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UPDATE 2-Japan govt to nominate Kuroda for another term as BOJ governor -Kyodo

-Kyodo@

* Nomination needs approval of both houses of parliament

* Reappointment will signal BOJ maintaining status quo

* PM Abe has expressed "full trust" in Kuroda (Adds detail, context)

TOKYO, Feb 9 (Reuters) - The Japanese government has decided to nominate Haruhiko Kuroda to serve as governor of the Bank of Japan for another term when his current one expires in April, Kyodo news agency reported on Friday.

The nomination would need approval by both houses of parliament, a near certainty as premier Shinzo Abe's ruling coalition holds comfortable majorities in the lower and upper houses of the Diet.

Kuroda and his two deputies, former academic Kikuo Iwata and career central banker Hiroshi Nakaso, will see their five-year terms end in April and March respectively.

Prime Minister Shinzo Abe has repeatedly said he has "full trust" in Kuroda's handling of monetary policy, signalling his willingness to offer him a rare second term.

Japan's Nikkei economic daily also reported that Kuroda will likely be reappointed and that the government will present the nomination to parliament this month, citing government sources familiar with the matter.

Kuroda has stressed his resolve to keep the monetary spigot wide open to achieve his elusive price target, a sign the BOJ will maintain its massive stimulus programme even as other major central banks move towards ending crisis-mode stimulus.

"A positive economic cycle is kicking off. I hope the BOJ continues to promote bold monetary easing to achieve its 2 percent inflation target," Abe told parliament on Monday.

The dollar rose against the yen on expectations that Kuroda's reappointment increases the chances the BOJ will maintain its massive stimulus programme.

Analysts have said, however, that a reappointment will diminish the chance of the BOJ deploying more radical stimulus measures, such as direct BOJ bank-rolling of government debt as advocated by other candidates for the job, including Abe's former aide Etsuro Honda.

Kuroda was hand-picked by Abe to take the BOJ's helm in 2013 to deploy one of the "three arrows" of his stimulus policies - aggressive monetary easing to reflate the economy out of grinding deflation.

But three years of aggressive asset purchases under a policy dubbed "quantitative and qualitative easing" (QQE) failed to accelerate inflation to the 2 percent target.

That forced the BOJ to revert to a policy targeting interest rates, a shift many analysts saw as a retreat from its radical monetary experiment towards a future withdrawal of crisis-mode stimulus. (Reporting by Chang-Ran Kim and Leika Kihara; editing by Andrew Roche)