Mako's father and her younger brother are in line to succeed Emperor Akihito, but only after her uncle, Crown Prince Naruhito, who is first in line.
Princess Mako has become engaged to Kei Komuro, a former tourism campaign worker who once starred in a "Prince of the Sea" campaign.
Komuro also worked as "Prince of the Sea" to promote tourism to the beaches of Shonan in Kanagawa prefecture, the report said.
The legislation to allow Akihito's abdication will make no reference to the controversial topics of whether to revise a males-only succession law or to allow women to stay in the imperial family after marriage, a move conservatives fear would be a first step to letting females inherit the throne, Reuters said.
These archaic laws have been questioned before and are sure to be questioned again now that popular Japanese Princess Mako of Akishino has reportedly fallen in love with a commoner and plans to marry next year. A public announcement would come first, then a wedding date would be set and then the couple will make a formal report to the emperor and empress.
But he added, with a smile, "I will feel truly delighted once it is made official". Mako later accepted the marriage proposal from Komuro.
As for the wedding, the process building up to the marriage will likely be full of time-consuming rituals, as is common in royal ceremonies.
When Princess Mako marries Komuro, she will lose her Imperial status because Komuro is a commoner.
The main opposition Democratic Party has been calling for deeper debate on enabling princesses to establish their own branches within the imperial family after they marry commoners as a way to cope with the shrinking size of the royal family.
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CNN also reported that some of Trump's top advisers, by contrast, are urging him to deliver his campaign pledges. Israel occupied east Jerusalem in 1967 and later annexed it in a move never recognised by the global community.
A Japanese princess will give up her royal status so that she can marry a graduate student she met at a party. The draft bill for the Emperor's abdication is to be submitted for both the upper and lower houses of parliament this week.
Little is known of the princess due to the royal family's secretive traditions in Japan, though according to local media she was the first member to attend university. She studied in the Faculty of Arts and majored in arts and cultural property studies.
She also attended the University of Edinburgh on exchange during her course.
Mako, who like her groom-to-be graduated from International Christian University, has a master's degree from the University of Leicester and has been working as a researcher at a museum.
According to a source, Princess Mako met Komuro about five years ago.
Komuro was coy about the relationship when he appeared on Wednesday before the cameras outside the Tokyo law office where he works. Her younger brother Prince Hisahito of Akishino is now third in line, behind their father and their uncle, Crown Prince Naruhito.
Her response? "Have a good day".
His announcement followed one from the Imperial Household a few months earlier that he and Empress Michiko, 82, would reduce their public appearances. The eight-member council includes the prime minister.
Crown Prince Naruhito and Crown Princess Masako have a child, 15-year-old Princess Aiko.
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