The head of Yamaguchi-gumi, the biggest crime syndicate in Japan, will retire and be succeeded by the group's No. 2 man, according to police sources.

The replacement of Yoshinori Watanabe, 64, by Kenichi Shinoda, 63, will be reported at the gang's extraordinary executive meeting Friday in Kobe, the sources said.

The leadership change will be the first for Yamaguchi-gumi in 16 years.