Japanese Prime Minister Yasuo Fukuda has announced his decision to resign.

At a hastily-summoned press conference at the prime minister's official residence on Monday, Fukuda claimed he met a lot of difficulties in his term and called for a new framework to implement policies.

The prime minister, who has been beset by sluggish support rate, said he made the decision to resign over the weekend and believed that now is the best time to resign to avoid a political vacuum.

"Putting the livelihoods of the people as the top priority, with the current state of political bargaining creating a political vacuum, we must end this situation of no political progress. Considering that (one) must look forward to creating new policies under the guidance of a new leader, I have decided today to resign."

In retrospect, Fukuda said he stepped into power in the very tough situation of the opposition bloc's control of the Upper House of the Diet.

The prime minister also complained that he has been plagued by scandals such as party members' misuse of political funds and government agency's loss of huge number of pension records since the first day of his term.

Fukuda expressed his confidence that his work in the past year will be a strong basis for future significant progress, adding that his ruling Liberal Democratic Party will hold a party presidential election to pick his successor.