Japan is expected to submit a proposal to Australia next week to jointly develop and manufacture submarines.
The nation is hoping to sell the submarine to Australia, Nikkei Asian Review reported Tuesday.
Prime Minister Shinzo Abe will call his National Security Council to finalize the plans that contain classified technical information.
Japan will join Germany and France are also expected to make proposals to the Australian government, setting up a three-way competition.
Japan will present three options for building the submarines. First option is to build in Australia or in Japan or else in a split arrangement. Australia has mentioned that it seeks the greatest possible Australian involvement in the project.
All eyes are on the Japan bid as this will be the first time since World War II that it will make a pitch to join the international arms market. While its submarines are considered superior to those of its competition, its relative inexperience in selling to international customers is said to be a hindrance.