Minister for the Tokyo Olympics, Seiko Hashimoto, said terms of contract for the event mean plans could be put on ice until more about the spread of the virus is understood. He said: “The contract calls for the Games to be held within 2020. That could be interpreted as allowing a postponement.”
The International Olympic Committee (IOC) has said preparation for the Olympic Games is going to plan, and cancellation was not being considered.
The games are scheduled to be held in Tokyo between July 24 and August 9.
News of a potential postponement of the games comes as it was revealed Japan stands to lose billions if the Olympics are cancelled.
If the games were abandoned altogether, it is estimated Japan could lose more than £11 billion, with private firms facing £6 billion losses.
In December, organisers said the cost of staging the Olympic and Paralympic Games was predicted to reach 1.3 trillion yen, the equivalent of £9.6 billion.
But this did not include the £22 million in additional costs for moving marathon events to Sapporo to avoid the summer climate.
It is expected a cancelled Olympic Games could cost the country billions in lost income from tourists who will no longer visit the city.
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Current figures show there are almost 1,000 people infected with coronavirus in Japan.
Of these, 12 people have died. Six in the country and six from the Diamond Princess cruise ship.
Most Japanese cases of the coronavirus derive from the Diamond Princess cruise ship, which was quarantined off the coast of Yokohama after fears the virus was rapidly spreading.
But it appears the IOC were keen to clarify statements made by Mr Hashimoto.
The organising body said: “The International Olympic Committee (IOC) Executive Board (EB) today expressed its full commitment to the success of the Olympic Games Tokyo 2020, taking place from 24 July to 9 August 2020.
“The IOC EB heard a report on all the measures taken so far to address the coronavirus situation, which was followed by a comprehensive discussion.
“A joint task force had already been created in mid-February, involving the IOC, Tokyo 2020, the host city of Tokyo, the government of Japan and the World Health Organisation (WHO).
“The IOC will continue to follow the advice of WHO, as the leading United Nations agency on this topic.”