Japan's next prime minister, Yukio Hatoyama, has "decided in principle" on the appointment, which will be announced on September 16 when he takes office, the Mainichi Shimbun said, quoting sources close to Hatoyama.
Okada, the secretary-general of the party, has personal connections with influential figures in the United States and is also known as an advocate for Asian-oriented diplomacy.
News reports also said DPJ senior adviser Hirohisa Fujii is a likely candidate for the finance minister post, while former health minister Naoto Kan may be tapped for the head of the newly-formed National Strategy Bureau.
Hatoyama's DPJ claimed a landslide win in last weekend's general election, ending more than half a century of almost unbroken rule by outgoing Prime Minister Taro Aso's Liberal Democratic Party.
The 56-year-old Okada has said Japan must get out from underneath the United States after years in the shadow of its major ally and must reach out more to its Asian neighbours.
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