Pakistan, Oct. 19 -- TOKYO - Japan is on the verge of appointing its first female prime minister, as the Liberal Democratic Party (LDP) and the Japan Innovation Party (Ishin) have agreed to form a coalition government, according to Kyodo News on Sunday.

Under the agreement, Sanae Takaichi, leader of the ruling conservative LDP, will become prime minister, with Ishin head Hirofumi Yoshimura expected to sign the deal on Monday. Ishin lawmakers are set to vote for Takaichi in parliament's leadership election on Tuesday, but the party will not join her cabinet immediately, Kyodo reported.

Read More: Bank of Japan Must Tread Carefully in Normalizing Policy

This arrangement falls short of a full partnership like the one the LDP held with Kom...