TOKYO: Japan's government on Thursday approved lifting Tokyo's virus emergency just over a month before the Olympics, but set new restrictions that could sharply limit fans at Games events.

The state of emergency in place in Tokyo began in late April and largely limits bar and restaurant opening hours and bans them from selling alcohol.

That measure will now end in the capital and eight other regions on June 20, Prime Minister Yoshihide Suga announced. It will stay in place in Okinawa.

"The number of infections nationwide has been declining since mid-May and the situation in terms of hospital beds is steadily improving," he said. In place of the emergency, the government will implement so-called "quasi-emergency" measures in Tokyo and six other areas until July 11.

The measures will slightly relax the rules on alcohol, allowing sales until 7 pm, but still asks restaurants and bars to shut at 8 pm. Crucially, with just five weeks until the pandemic-postponed Games open, strict limits will remain on the number of spectators allowed at large events.

The current state of emergency allows only 5,000 people or 50 percent of venue capacity, whichever is smaller. And on Wednesday, the government approved an upper limit of 10,000 spectators, but only for areas not under any restrictions.

Those rules are likely to guide Olympic organisers when they decide in the coming days how many domestic fans, if any, will be allowed to attend.