Prime Minister Yoshihiko Noda on Friday dismissed the possibility of forming a grand coalition with the Liberal Democratic Party, at least for the time being, following speculation he was seeking to reach a deal with the main opposition force to pass sales tax hike legislation.

Creating a grand coalition "is one of the possibilities as we move forward," but "realistically it's a difficult task right now," Noda said during a Diet session.

As for rumors he might dissolve the Lower House and call a snap election, Noda said he would only resort to such a move "at an appropriate time, after pushing through what (bills) we have to."