TOKYO - Japanese Prime Minister Naoto Kan confirmed on Tuesday that he would step down as head of the ruling party this week if two key bills were enacted, clearing the way to choose a new leader to cope with Japan's nuclear crisis and slew of economic ills.

A Japanese cabinet minister said the country will have a new prime minister by early next week.

Kan has faced demands to step down amid criticism of his handling of the March 11 earthquake and tsunami and subsequent nuclear crisis.