Japan Sumo Association Chairman Musashigawa will step down over the scandal involving illegal betting on professional baseball and sumo's alleged ties with the yakuza, sources said Wednesday.

The exit of Musashigawa, who had claimed to be sick and was hospitalized shortly after being sidelined and seeing a former prosecutor effectively take over his post, was announced at an extraordinary board meeting the same day. Musashigawa had reportedly planned return to his duties Thursday but later said he would resign.

Musashigawa, who has been suffering from stress and high blood pressure, left a Tokyo hospital at the end of last month and was initially expected to return to duty around Friday.

Former Tokyo High Prosecutor's Office chief Hiroshi Murayama has been serving as the sumo governing body's acting chairman while Musashigawa was on probation after Miyabiyama, a wrestler from the chairman's stable, was found to have gambled on baseball.

A ranking JSA official said Wednesday it has decided to incorporate reforms put forth by an independent panel that aim to cut ties between sumo and the underworld in connection with betting on pro baseball.

The panel, which held an extraordinary board meeting the same day, suggested in a Saturday meeting that penalties be imposed to prohibit association with gangsters as a basic strategy to rid sumo of criminal elements.

They also said those who associate with gangsters or engage in illegal gambling should be reported to the JSA chairman.