TOKYO - Former Democratic Party of Japan ( DPJ) leader and powerbroker Ichiro Ozawa on Tuesday rejected a proposal to suspend his party membership following his indictment over a funds scandal.

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Ozawa, as has been the case since he was indicted last month for a funds scandal, professed his innocence during a meeting of the DPJ ethics panel and was quoted as saying that there was indeed "no rational reason why he should be suspended."

Ozawa said that his trial under Japan's new civil-based arraignment system was unique and therefore should be handled accordingly by prosecutors.

Ozawa's objections however will likely fall on deaf ears and the DPJ executive body is expected to go ahead with the suspension - the final decision of which will be made later on Tuesday, officials said.

The suspension of a key player in the DPJ's rise to power has punctuated a growing divide within the DPJ with a coterie of 16 pro-Ozawa lawmakers announcing Thursday that they would seek to leave the DPJ's bloc in the House of Representatives, to oppose moves being made to suspend the former party leader.

The growing rift in the party is adding to Prime Minister Naoto Kan's mounting headaches as he faces plunging public support rates and fierce enmity from opposition parties, which could lead to key budget-related bills not being passed through the parliament and even a snap-election.

The DPJ's move to suspend the membership of Ozawa from the party follows his indictment on Jan 31 for alleged false reporting of his political funds.

The suspension, if ratified, will likely last until Ozawa's trial is over. The trial could begin as early as September, officials said.