That's according to two people with knowledge of the nomination who spoke to The Associated Press on condition of anonymity because they were not authorised to speak publicly on the matter ahead of the announcement.
The author, attorney and most well-known living member of the Kennedy family supported Obama's campaign for the White House where her father served until his assassination 50 years ago.
Japan is used to having prominent Americans serve as envoys. Former US ambassadors to Japan include former Vice President Walter Mondale, former House Speaker Tom Foley and former Senate Majority Leaders Mike Mansfield and Howard Baker.
But Kennedy would be the first woman, if confirmed by the Senate.
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