Senior aides to Junichiro Koizumi, Japan's prime minister, have hinted that the timetable for postal privatisation could be allowed to slip, opening up the possibility of flexibility in talks with the ruling Liberal Democratic party (LDP), many of whose members vehemently oppose postal reform.

Mr Koizumi has insisted until now that the post office should be split into four separate entities from 2007 to ensure that there are no cross-subsidies between the mail, insurance, savings and counter divisions.