Japan hopes to demonstrate its resolve not to cave in to terrorism with the fresh assistance, which will be announced at a global counter-terrorism conference starting on Wednesday in Washington, the Sankei Shimbun said.
It said the money would be distributed through international organisations to affected regions, including countries bordering Syria and Iraq. Large parts of those countries are controlled by Islamic State militants.
Prime Minister Shinzo Abe has come in for criticism over the timing of an earlier USD 200 million Japanese pledge to help refugees fleeing IS-controlled areas, and the comments he made.
Abe announced the USD 200 million aid in Egypt on January 17, saying Japan would "help curb the threat" of IS and give the money "for those countries contending with" the militants.
The announcement was followed by the hostage drama, with the militants demanding the same sum in exchange for a captured Japanese contractor and a journalist.
The militants later changed their demand to the release of a death row inmate from a Jordanian prison.
Tokyo pressed Jordan for its help, but the militants eventually announced the killing of the pair as well as a Jordanian airman, along with photos and videos.
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