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Japan's Democrats agree govt coalition: official

world Updated: Sep 09, 2009 11:33 IST

The Democratic Party of Japan (DPJ), set to take power next week after a landslide election win, on Wednesday struck a coalition deal with two smaller parties, officials from the three groups said.

"We finally reached an agreement," DPJ secretary general Katsuya Okada told reporters after wrapping up talks with the Social Democratic Party and the smaller People's New Party (PNP).

The DPJ won a sweeping majority in the lower house in August 30 elections, defeating the long-ruling conservative party, but needs the support of the two groups in the upper house, the chamber which can block or stall legislation.

"We have reached an agreement at the level of secretaries-general," said an official of the centre-right PNP, also telling AFP that the leaders of the three parties would sign the accord later Wednesday.