The company said in a statement that the new magnetic levitation railway, called Linear, which travels above ground using an electromagnetic pull, will stretch in the first phase from Tokyo to Japan's fourth largest city, Nagoya, in central Japan, at an estimated cost of $45 billion.
The company said it was planned that the train would travel at around 500 kph (310 mph), in comparison with the company's Shinkansen or bullet train which has a speed of 300 kph (186 mph).
The project's second phase will link Nagoya with Japan's second largest city, Osaka.
The only maglev train currently in operation is in Shanghai in China and travels at 430 kph (267 mph). In April 2007, France's TGV set a speed record of 320 kph (198 mph) making it the world's fastest conventional train.