But the BBC's Tokyo correspondent Charles Scanlon says there are deep divisions within the party. Some groups in the LDP favour a reformer who could appeal to voters and tackle some of the country's deep-rooted economic problems. Others would rather elect a traditionalist. The LDP also faces the difficult task of trying to convince the Japanese public that it means to bring about real change and will tackle the country's deep-rooted economic problems. The government announced on Friday a package to reform the country's ailing banking sector and help boost the economy.
Analysts say there are fears of a new wave of bankruptcies in the private banking sector.
Added to a sliding stock market, many believe the economy is heading for recession.