JAPAN'S prime minister has called a snap election and put off a sales tax increase planned for next year as the country struggles to fend off recession.

Shinzo Abe said he had decided to postpone a second tax rise until 2017 after the economy slumped into recession following a tax increase in April, showing it is too weak for another rise.

He said he would dissolve parliament on Friday and the election is scheduled for December 14.

The ruling Liberal Democrats have a solid majority and hope to further consolidate their power at a time when opposition parties are weak and in disarray.

Delaying the tax rise will slow Japan's work on repairing its tattered public finances but Mr Abe said the risk to the economy was a bigger threat.

Mr Abe said he would step down if his strategy to revive the ailing economy falls flat.

He added: "I have been pondering this problem. Even if we raise the tax as planned, tax revenue will not increase if the economy does not recover."

He said public support was needed for his policies.