Reports from Japan say the Social Democratic Party is to leave Prime Minister Ryutaro Hashimoto's coalition government.

The Japanese news agency, Kyodo, said the Social Democrats were ending their alliance with the governing Liberal Democrat Party and their other partner, the New Party Sakigake because of disagreements over party funding, and over Japan's defence ties with the United States.

However, political analysts say the Social Democrats had, in any case,been expected to leave the coalition before July's elections for the upper house of parliament, so as to make their own appeal to voters.

Their departure is not expected to have much impact because the ruling party has enough support to push through important legislation.