Finance Minister Yoshihiko Noda will become Japan's next prime minister after defeating the Trade Minister Banri Kaieda in the ruling party leadership run-off vote.
Mr Noda, who came second in the first round of voting, got 215 votes and Mr Kaieda 177 and is seen as more likely to tackle Japan's massive public debt, Reuters reports.
Mr Noda has been the financial markets' preferred candidate to succeed Naoto Kan, who resigned as Democratic Party of Japan leader last week after criticism of his response to the earthquake and devastating tsunami on 11 March this year.
He will become Japan's sixth prime minister in five years and is expected to be confirmed by parliament on Tuesday.
