TOKYO, Jan 5 (Reuters) - Japanese Finance Minister Hirohisa Fujii is likely to resign for health reasons, Kyodo news agency reported on Tuesday, a fresh blow for Prime Minister Yukio Hatoyama as he wrestles with a frail economy and huge public debt.
Kyodo quoted a ruling party lawmaker, whom the agency did not name, as saying Fujii was likely to step down.
Hatoyama said earlier he wanted 77-year-old Fujii, one of the few experienced members of the novice Democratic Party-led government, to stay on. If he resigns, it could put the fiscal restraint championed by the veteran lawmaker at risk and weigh on government bonds.
Fujii, 77, was admitted to hospital for tests last week and later said he was "worn out" by wrangling over finalising Japan's budget. (Reporting by Linda Sieg; Editing by Jerry Norton)