The Democratic Party of Japan selected Yukio Hatoyama, currently its secretary-general, as its new leader. He takes control after the party's previous boss stepped down amid a political funding scandal.

The Democrats are in position to make major gains or even rise to power in the next elections. A win for the party would likely mean that Hatoyama would become prime minister. Hatoyama's grandfather, Ichiro Hatoyama, served as prime minister during three administrations in the 1950s.

"I will lead the change to a new government and create a society that brings joy to Japanese citizens," he said after his selection.

Hatoyama, who is one of the party's founders, defeated party Vice President Katsuya Okada by a 124-95 vote among party lawmakers.

Support for current Prime Minister Taro Aso and the ruling Liberal Democratic Party, which has held power for most of the past 50 years, is low ahead of the general elections which must be held by Sept. 11 this year.

The previous chief of the opposition party, Ichiro Ozawa, was ahead of Aso in some public opinion surveys before he got caught up in a political funding scandal in which one of his chief aides was arrested.

Ozawa initially said he would remain in his post, but on Monday suddenly announced his resignation, saying he did not want the scandal to hurt his party.

Hatoyama has led the party before and his stances largely match those of Ozawa. He said Saturday that he would not make any big changes in personnel.

The Democrats have called for Japan to be less reliant on the U.S. in its foreign policy.

Aso's party was stung this past week when a Cabinet member resigned following media reports that he misused a free train pass for lawmakers for a private trip with his girlfriend.