The unit, to work alongside other intelligence-gathering operations run by the foreign and defense ministries and the police, will be set up on Tuesday with a staff of about 20 with a similar number working overseas in Japanese embassies.
Paris shootings, explosions leave at least 128 dead
"As underscored by the recent large-scale attacks on Paris, the situation regarding terror attacks is extremely severe," Chief Cabinet Secretary Yoshihide Suga told lawmakers and government officials.
"The government must do its utmost to forestall terror attacks while working with the international community."
The attacks on Paris bars, restaurants, a soccer stadium and a concert hall killed 130 people. IS claimed responsibility.
Japan is to host a series of high-profile events such as the Group of Seven summit next year, the Rugby World Cup in 2019 and the Olympics in 2020.
Syria, Iraq: Who is fighting the Islamic State?
IS killed two Japanese hostages this year after Prime Minister Shinzo Abe pledged around $200 million in non-military assistance for countries battling the militant group.
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