The options to be discussed include outright purchase of the aircraft or joint manufacturing or a combination of both.
The JWG meeting, expected on December 23, will be the second since September 12 and is likely to be followed by another high-level meeting between the two countries shortly afterwards, official sources said.
Japan is pushing for off-the-counter sale of US-2 aircraft produced by ShinMaywa Industries Ltd, which has a range of about 4,500 km and is suitable for search-and-rescue operations. The US-2 is also capable of carrying sensitive communications equipment.
"While Japan wants to sell these aircraft, India wants to manufacture it jointly. The JWG is likely to meet on December 23 to decide on these issues," the sources told PTI.
The JWG, headed by Industry Secretary Saurabh Chandra on the Indian side, was formed during the Japan visit of Prime Minister Manmohan Singh after he and his Japanese counterpart Shinzo Abe signed an agreement on May 29.
The JWG had later set up a sub-group, with officials from the Ministries of External Affairs, Defence, Civil Aviation and Industry, to study the matter and prepare a report.
The sale of the aircraft, if it happens, would be the first of a finished product made by Japan's homegrown defence industry since restrictions were imposed on it on export of weapons systems and other such equipment.
The last amphibious aircraft operated by the Indian Navy were the light transport Sealand aircraft, which were inducted in the 1950s and phased out a decade later. Since then, the Indian Navy has never operated any amphibious aircraft.
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