Japan quickly sealed the deal with Chile, which had already signed a free trade agreement with China in 2005.

Chile is Japan's biggest provider of coal and provides Asia's largest economy with a quarter of its salmon.

Japanese Foreign Minister Taro Aso and his Chilean counterpart Alejandro Foxley signed the agreement in a joint ceremony in Tokyo.

"By accelerating and developing a strategic economic alliance in various fields between Japan and Chile, Japan expects that both our economies will be vitalised markedly," a Japanese foreign ministry statement said.

Japan, the world's second largest economy and a major exporter, has been seeking a growing number of free trade deals as global liberalisation talks languish.

Since signing its first agreement with Singapore in 2002, Japan has sealed deals or their framework with Brunei, Indonesia, Mexico, Malaysia, the Philippines and Thailand.