Japan is upgrading its Patriot PAC-3 missile defense system in time for the 2020 Tokyo Olympic Games, adding range and accuracy needed to intercept more advanced North Korean ballistic missiles, four sources with knowledge of the plan said.

The move represents the most significant upgrade to Japan's missile defense system in a decade and is part of an increase in military spending in the region, where geopolitical tensions are rising.

The rollout of the new advanced Missile Segment Enhancement, which could double the range of the current PAC-3 missiles to around 30 km, will likely start next year, said the sources, who were not authorized to speak publicly about the project.