Tachiagare Nippon (Sunrise Party of Japan) and Shinto Kaikaku (New Renaissance Party) have agreed to form a parliamentary group in the Upper House ahead of an extraordinary session slated to convene July 30, sources in the two small opposition parties said.

Neither party fared well in Sunday's election, and the move is seen as being driven by their hope of retaining some say in the Diet with the possibility of future unification in mind.

Tachiagare Nippon, headed by Takeo Hiranuma, and Shinto Kaikaku, led by Yoichi Masuzoe, were launched before the Upper House election by defectors from the Liberal Democratic Party.