Takaichi is considering an election date of February 8, a source with knowledge of the matter said, in line with earlier reports by domestic media.
"We need to seek a fresh mandate," Shunichi Suzuki, secretary-general of the Liberal Democratic Party, told reporters after meeting Takaichi on Wednesday.
Japan's first female prime minister, Takaichi is seeking to capitalise on a surge in public support for her government since she came to office in October.
Suzuki said the ballot would allow voters to cast their verdict on the LDP's new coalition with the right-wing Japan Innovation Party, known as Ishin, after Takaichi cut ties in 2025 with a longstanding liberal partner, Komeito.
"One reason for dissolving parliament is that the previous election was under the LDP-Komeito government; the public has not yet rendered a verdict on the change in our coalition partner," Suzuki said.
Takaichi would lay out her election plans at a media conference on Monday, he said.
The vote would also offer a chance to test public appetite for plans to boost government spending to revive growth and increase defence outlays under a revised national security strategy, Suzuki said.
Reports last week that Takaichi was considering a snap poll triggered a sell-off in Japan's yen and government bonds as investors fretted over how one of the world's most indebted advanced economies would fund her fiscal expansion plans.
The news also comes amid the worst diplomatic dispute in more than a decade with powerful neighbour China, triggered by Takaichi's remarks on Taiwan, and before a planned visit to Washington to meet President Donald Trump in the second half of 2026.
As the timing of the vote might make it tricky for parliament to pass the 2026 budget by the March end of the current fiscal year, Takaichi is considering a stopgap spending plan, the Yomiuri newspaper has said.
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