Prime Minister Shinzo Abe on Thursday appointed rival and former Foreign Minister Fumio Kishida to the key post of policy chief for the ruling Liberal Democratic Party, as part of the party’s leadership shake-up.

The move appears to be a compromise with Kishida, bringing him one step closer to his widely rumored bid to become the next prime minister.

Kishida’s appointment as LDP policy chief is seen as a possible prelude to his bid to run for the party’s leadership election next year and thereby presents a challenge to Abe’s prospects of winning a historic third consecutive term.