**Japan’s newly-elected Democratic Party (DPJ) has agreed to form a coalition with two smaller parties, reports say.**The deal with the New People’s Party and the Social Democratic Party came after talks faltered over a proposal to relocate US forces in Okinawa.
Despite winning a landslide victory in last month’s election, the DPJ needs support in parliament’s upper house.
DPJ leader Yukio Hatoyama is expected to be declared the next prime minister in a parliamentary vote next week.
The DPJ victory on 30 August overturned five decades of near-unbroken rule by Japan’s Liberal Democratic Party.