Japan's largest opposition party leader Ichiro Ozawa said Wednesday that he will stay as president of the Democratic Party of Japan (DPJ), withdrawing his earlier resignation on Sunday.

The veteran politician said in a meeting with his party's lawmakers that he would "gamble his political life on the next lower house election" and fight to gain a victory. Ozawa also said that he would endeavor to lead the DPJ to take over the administration.

The 65-year-old politician offered to quit the top post to " take responsibility for causing confusion within the party" at a hastily arranged press conference on Sunday. He has been under criticism for not immediately rejecting a proposal from Prime Minister Yasuo Fukuda to form a ruling coalition with the governing Liberal Democratic Party last week.

The main opposition party's executives have since been urging the 65-year-old politician who led the party to a landmark victory in July's parliament election to stay as the party's head.

DPJ Secretary General Yukio Hatoyama told reporters after meeting with Ozawa on Tuesday night that Ozawa intended to retract his resignation.

Founded in April 1998, the DPJ is the second largest party in Japan after the LDP, occupying less than one-fourth of seats in House of Representatives and 119 seats in the 242-seat House of Councilors.

Ozawa was elected as DPJ president in April 2006 to serve out the remaining term of Seiji Maehara, who stepped down over a scandal. The veteran politician was reelected on September 2006 and led the party to an overwhelming victory in July's upper house election to grab majority for the oppositions in the House of Councilors, which has long been held by the ruling bloc.

Ozawa has been viewed as a powerful rival against leader of the ruling Liberal Democratic Party. There have been speculations that Ozawa might force the LDP to dissolve the lower house in advance and thereafter change Japan's political landscape.