Japanese Prime Minister Yukio Hatoyama of the Democratic Party of Japan (DPJ) said on Tuesday that the government was close to making a decision on what to do about the Futenma air facility in Okinawa Prefecture, and was putting the final touches to its proposal.

"We are putting the final touches to a government proposal right now," the prime minister said.

Hatoyama has promised to resolve the issue of how to modify or change a Status of Forces Agreement (SOFA) signed between Washington and Tokyo in 2006 by the end of May. Under that agreement, the Futenma air facility, which is currently located in an urban center, was to be moved to a less populated coastal area.

Around 90,000 people in Okinawa on Sunday, however, rallied to have the base moved off their prefecture. An alternative site in Tokunoshima has also seen protests in recent weeks over proposals to have the base moved there.

Media reports in the United States have suggested that Kurt Campbell, the senior negotiator on this matter for Washington, had received a proposal from Tokyo. On this matter, Hatoyama said "I want to make it clear that working level talks have not yet even begun between Japan and the United States."

Washington has expressed its desire to see as much of the 2006 SOFA agreement remain intact as possible, and any proposal made by the Japanese government is likely to come under intense scrutiny.