Japan is considering pledging several billion dollars in reconstruction aid for projects in Iraq that are running behind schedule due in part to the worsening security situation there, government sources said Saturday.

Despite its fiscal difficulties, Japan is prepared to make the pledge at an international conference of donors that is scheduled for late October in Madrid, the sources said.

Japan's policy is to fully cooperate with the rebuilding of Iraq, part of a dual-pillar policy of financial contributions and dispatching the Self-Defense Forces to help with reconstruction work.