The move comes as Tokyo is moving closer to legalizing the gambling industry.
Casinos are banned in the country, but the probability of their legalization has improved due to political shifts, Reuters noted.
MGM CEO James Murren said the Las Vegas-based casino resorts operator would spend between 500 billion yen and one trillion yen ($4.8 billion to $9.5 billion) on an integrated resort in Tokyo, Yokohama or Osaka.
The project would combine casinos with hotels, shopping and conference space, Reuters added.
Several blue-chip companies would seek an equity stake in an MGM-led project, according to Murren.
Shares of MGM Resorts closed higher on Friday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and expanding profit margins.
But the team also finds weaknesses including disappointing return on equity and generally higher debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MGM