The Japanese government is considering a dollar-swap arrangement with India to provide emergency liquidity in case the European debt crisis reaches emerging economies, the Nikkei business newspaper said on Sunday. The agreement would set the total swap arrangement at $10 billion, or 780 billion yen, Nikkei added.

Both countries are looking to sign off on the arrangement next Wednesday, when leaders meet at a bilateral summit, the paper said.

The currency swaps are expected to support the Indian rupee as it continues to weaken against the greenback and Europe's sovereign debt crisis hits India's exports.

The dollar-swap arrangement with India will follow a similar agreement with South Korea in October.