Japan's Finance Minister Shoichi Nakagawa said he would resign, after denying being drunk at a Group of Seven meeting in Rome where he appeared incoherent and slurred his speech.

Nakagawa had faced calls from the opposition to be sacked over his behaviour at a press conference after the G7 meeting on the global economic crisis, despite blaming cold medicine for his drowsy appearance. He said he would step down after key budget bills are passed some time in the coming weeks.