Japan has decided to reject South Korea's offer to extend a military intelligence-sharing pact scheduled to expire in November in exchange for Tokyo easing tightened trade controls, government sources said Friday.

South Korea last month notified Japan that it is pulling out of the bilateral General Security of Military Information Agreement (GSOMIA), which helps the U.S. allies counter missile threats from North Korea.

Lee Nak-yon, the South's prime minister, has said the termination of the pact could be avoided if Japan puts South Korea back on its "whitelist" of trusted countries that enjoy minimum trade restrictions on goods that have military applications. The pact is set to expire on Nov. 22.