Japan's Prime Minister Yukio Hatoyama announced Wednesday his decision to resign in a general assembly of the ruling Democratic Party of Japan (DPJ) lawmakers.

Following Hatoyama's resignation and his request for DPJ Secretary General Ichiro Ozawa to resign, Ozawa voiced his intention to step down from the ruling party's No. 2 post.

At a meeting of the DPJ's top three held shortly after Hatoyama 's resignation, it was decided that Masayuki Naoshima, DPJ's policy research committee chairman, along with DPJ President Hatoyama and Ozawa, will resign en masse from the party's top posts.

The candidate for the new DPJ president is expected to be put up later in the day, and the new party chief is likely to be elected at an assembly of DPJ lawmakers on Friday.

Hatoyama's support rate plunged below 20 percent after being blamed for dividing the ruling coalition due to his mishandling of a plan to relocate a U.S. military facility in Okinawa, causing the Social Democratic Party to bolt from the coalition and reposition themselves to oppose the DPJ in the forthcoming election.

Hatoyama said his management body's alleged false reporting of his political fund has also tainted the image of DPJ, another factor to his decision of resignation.

"We should try to rebuild a clean DPJ so that our people will listen to us," Hatoyama said.

"The government's work has not reflected the public's wishes," the premier said.

"Because of the Futenma issue, I lost trust of my people," Hatoyama said in tears, while adding "I have been and will continue to make efforts (to move the U.S. military facility out of Okinawa)."

"I don't believe in the next 50 or 100 years Japan will still rely on the United States for defense...although the Japan-U.S. alliance is important for the time being," he said.

Hatoyama met Tuesday evening with Ozawa, the powerful chief election strategist behind the premier's throne, and his party's upper house caucus leader Azuma Koshiishi to discuss his political future.

Analysts said Deputy Prime Minister and Finance Minister Naoto Kan is likely to succeed Hatoyama as the new premier.

Hatoyama is the fourth Japanese prime minister to step down in four years.

Hatoyama's departure comes only weeks before a House of Councillors election that is widely expected to be held on July 11. The DPJ needs to win the election to secure a majority in the Diet to enact legislation smoothly.

DPJ swept into power last September to break about half a century's nearly unbroken rule of the Liberal Democratic Party ( LDP).

After Hatoyama announced resignation, the LDP called for dissolving lower house for a snap election.