Prime Minister Fumio Kishida may decide as early as this week on the easing, which would also allow individual travellers to visit Japan without travel agency bookings.
Japan did not require tourist visas for 68 countries and regions before the pandemic.
The government may scrap a daily cap on arrivals by October, a newspaper reported on Sunday.
Deputy chief cabinet secretary Seiji Kihara said on a television programme on Sunday that a weak yen is most effective in attracting inbound tourism, adding that further steps must be taken to draw in foreign visitors.
Japan last week raised the daily ceiling of inbound travellers to 50,000 from 20,000 and eliminated a requirement for pre-departure COVID tests, easing what have been among the most restrictive border measures among major economies.
