The country's current era, Heisei, will end in a month with Emperor Akihito's historic abdication.
Chief Cabinet Secretary Yoshihide Suga announced the highly anticipated name by holding up a board with the characters handwritten on it.
Prime Minister Shinzo Abe has addressed the nation to explain its meaning.
Each Japanese emperor's reign, or "gengo", is given a name that is then used alongside the Western calendar to mark the years.
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