According to the Kyodo news agency, the parties reached their first basic agreement in September following London's withdrawal from the European Union in January. If the new deal is sealed this month, Tokyo will seek its ratification in the parliament on 26 October.
The UK and Japan aim to increase the volume of food trade, strengthen cooperation in the high-tech and automotive industries, as well as exchange highly-skilled personnel.
Expanded collaboration is also expected in the areas of digital, cybersecurity and financial services, as well as in the consumer sectors, the media outlet added.
Companies from both countries will also be able to obtain licenses and work visas for their employees much quicker to operate in their respective markets.
The UK has been discussing trade deals with the European Union and non-EU nations after Brexit that took place on 31 January.