Japan's Maritime Self-Defense Force says a destroyer that became unable to move in waters off western Japan had lost part of a propeller, and it is still leaking oil.

The destroyer Inazuma suffered a propeller malfunction while navigating the Inland Sea off Yamaguchi Prefecture on Tuesday.

The MSDF set up an investigative panel to determine the cause of the accident, including the possibility that the ship hit a rock in the shallows.

The MSDF says divers who examined the hull on Wednesday found that one of the ship's two propellers had part of a blade missing.

Oil used to lubricate the propellers was leaking from a hole. The divers patched up the damage, but some oil is reportedly still seeping out.

The divers also found cracks and dents in the front part of the hull, heightening the possibility that the ship hit an underwater obstacle.

The MSDF says it will stop the leak and make arrangements with the Japan Coast Guard before towing the destroyer, but it is not clear when this will happen.