The Japanese Olympic Committee (JOC) has given the green light to Aichi Prefecture and its capital Nagoya as joint candidate hosts for the 2026 Asian Games.
Representatives of Nagoya city and Aichi Prefecture visited the JOC office earlier this week, intending to resume talks regarding a joint bid.
Discussions between the two sides hit a road block last week, after the central Japanese prefecture had not come up with detailed cost estimates.
"It's regrettable things got confusing toward the end," JOC Secretary General Eisuke Hiraoka was quoted as saying by Kyodo news agency.
"It could become a matter of international trust. We hope they will positively proceed with the matter."
Aichi's prefectural government has since indicated to Nagoya that total costs are estimated to reach roughly 85 billion yen ($822.85 million), out of which 25 billion yen is expected to be covered by sponsorships and other revenue.
The prefecture is expected to pay two-thirds of the remainder and Nagoya the rest.
The JOC Executive Board met in Tokyo and decided that the two local governments will be required to submit an attested official document agreeing to co-host the Games.
The Olympic Council of Asia is expected to select the host location at a meeting scheduled for Sept. 25 in Vietnam, according to the Kyodo report.
"There are expectations that we would be able to lead the event to success if we jointly host it," Aichi governor Hideaki Omura said in a statement.
Japan, host of the 2020 Olympics, last staged the Asian Games in Hiroshima in 1994. Indonesia's Jakarta and Palembang will host the next edition of the Asian Games in 2018.