TOKYO: Japan's new ruling Democratic Party clinched a deal yesterday to form a coalition with two tiny parties whose help it needs to pass laws smoothly, papering over gaps on security matters that could upset key ally Washington.

Despite a landslide victory in the August 30 poll for parliament's lower house, Yukio Hatoyama's Democratic Party of Japan (DPJ) needs backing from the pacifist Social Democrats and the conservative People's New Party in the upper house to ensure legislation can be enacted freely, since the upper chamber can delay bills.

"It is wonderful to have reached a coalition agreement that will help lead people's lives in the right direction," Hatoyama said in a news conference with his new partners. The parties compromised on wording of a call for changes to a planned redeployment of US Marines on Japan's southern island of Okinawa.