But Hakubun Shimomura added that he would stay in the job until a cabinet reshuffle expected next month -- a request from Prime Minister Shinzo Abe.
The stadium fiasco has pushed back a new venue's completion date, embarrassing Japanese sport officials who have also been forced to find an alternate showpiece site for Rugby World Cup matches in 2019. Japan is hosting the event.
"I offered my resignation to the prime minister over the phone last night," Shimomura told a news conference today.
He will also return six months' worth of ministerial salary, worth a total of 900,000 yen (USD 7,500). Shimomura's parliamentary salary of 1,315,000 yen per month will be unaffected, however.
His departure comes after a third-party panel released a report on Thursday that said the minister was responsible for the stadium fiasco.
Abe shocked Olympic organisers in July when he pulled the plug on Iraqi-British architect Zaha Hadid's winning design as soaring costs put it on course to become the world's most expensive sports stadium.
The futuristic design had also been criticised by some architects who said it would be an eyesore.
Following Tokyo's decision to scrap the design plans, Kimito Kubo, a Japanese official heading the stadium construction, stepped down, saying it was for "personal reasons".
But the resignation was widely seen as him taking the blame for the embarrassing row.
Local media reported last week that renowned Japanese architects Kengo Kuma and Toyo Ito will take part in a new design competition.
Hadid's firm has said it will not be bidding as it could not find a contractor.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
