Prime Minister Junichiro Koizumi compromised with his Liberal Democratic Party on Thursday and agreed to leave the timing of the privatization of the nation's postal services ambiguous in the party's campaign policy.

The move, which comes on the eve of the expected dissolution of the House of Representatives, is widely seen as a blow to Koizumi's reformist image.

But Koizumi strongly denied making any concessions during his talks with LDP policy chief Fukushiro Nukaga on Thursday evening.