The decision comes less than a year after the 68-year-old took the helm of the long-dominant Liberal Democratic Party (LDP). He has since lost his majority in both houses of parliament.
The farm minister and a former prime minister reportedly met with Ishiba on Saturday night to urge him to resign voluntarily.
Last week, four senior LDP officials including the party's number two Hiroshi Moriyama offered to resign.
Those backing the move included 84-year-old influential former prime minister Taro Aso, according to local media.
LDP lawmakers and regional officials across Japan who want a new leadership election will submit a request on Monday.
Ishiba's term as party leader was supposed to end in September 2027.
But recent opinion polls suggested rebounding support for Ishiba's cabinet, following tariff deals with the United States and the government's decision to reverse current rice policy to increase production.
A Nikkei survey held at the end of August put Takaichi as the most “fitting” successor to Ishiba, followed by farm minister Shinjiro Koizumi, but 52 percent of respondents said a leadership contest was unnecessary.
The LDP has governed almost continuously since 1955, but voters have been deserting the party, including towards fringe groups like the populist Sanseito.
Diligent career politician Ishiba was elected LDP leader last year on his fifth attempt, promising a “new Japan” - AFP
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