The agency will serve as the secretariat of the newly established National Security Council, which is responsible for coordinating information from the police, defense, and foreign affairs, and seeks to strengthen coordination among ministries and agencies.
The move follows the approval in May of a law that gave rise to both agencies and, according to several national media outlets, paves the way for future anti-espionage legislation.
The council, composed of Takaichi and nine members of her cabinet, held its first meeting on the opening day to begin drafting a new national intelligence strategy.
The new office, with a staff of 730, replaces the former intelligence agency within the cabinet.
Kazuya Hara, a former senior official at the National Police Agency and a close associate of late former Prime Minister Shinzo Abe, will be the head of the new National Intelligence Bureau.
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