Japan's Prime Minister Shinzo Abe talks to journalists in front of the prime minister's residence in Tokyo, March 24, 2020. (CHARLY TRIBALLEAU / POOL PHOTO VIA AP)

TOKYO - Japanese Prime Minister Shinzo Abe and International Olympic Committee (IOC) President Thomas Bach have agreed to postpone the Tokyo Olympics until no later than the summer of 2021, the Japanese leader said Tuesday.

I proposed to Mr Bach that we postpone the Olympic Games for a year. He 100 percent agrees with me.

Shinzo Abe, Japanese PM

After a phone conference with Bach, Abe told reporters that they will aim to hold the Olympics and Paralympics next year, putting an end to the two-months speculation of the Games' future since the outbreak of COVID-19.

"I proposed to Mr Bach that we postpone the Olympic Games for a year. He 100 percent agrees with me," Abe said.

“The Tokyo Olympics will not be canceled,” Abe went on to say, adding that the IOC is likely to hold an extraordinary meeting to discuss the postponement of the Tokyo Games.

Tokyo Governor Yuriko Koike said in a press conference that the postponed Games, to be held in summer 2021, will still be called 2020 Tokyo Olympics.

The IOC said later in a statement that the meeting was "very friendly and constructive" and the two leaders expressed their shared concern about the worldwide COVID-19 pandemic. 

The two sides have also agreed that the Olympic flame will stay in Japan.

ALSO READ: US, NZ join calls for Tokyo Games to be postponed

The unprecedented delay will be a major blow to host Japan and is certain to have a cascade of economic, political and social ramifications apart from considerable logistical challenges, local media reported.

The postponement would be the first since the modern games began in the 19th century and make the Tokyo 2020 Olympics the biggest sporting event called off due to the pandemic that has caused more than 387,000 confirmed cases, led to a plunge in global markets and slammed the brakes on international travel.

Due to the IOC’s numerous stakeholders, it may take some time for the postponement to be made officially.

The last time an Olympics was canceled was in 1944 due to World War II, and the games have never been delayed by as long as a year under the auspices of the IOC, which was established in 1894. The 1940 games were initially postponed, but then canceled.

But a 2021 Games has its own headaches, including a raft of sponsorship agreements set to expire in 2020 and a conflict with the global track-and-field championships.

With Bloomberg inputs