Japan will provide Pacific island nations with 527 million US dollars in official development assistance over the coming three years to support environmental, health and education measures.
The newspaper, Yomiuri Shimbun, says the Prime Minister, Taro Aso, will make the announcement at the 5th Pacific Islands Leaders' Forum, or PALM, which is to be held on Hokkaido this weekend.
Japan's aid will support the development of solar power generation and desalination equipment.
The government will also put money into improving educational facilities, particularly for employment training in fields such as nursing.
Funds will also go to exchange programmes involving about 1,000 young people over three years, and improving infrastructure, transportation and telecommunications systems.