Two of the aircraft are currently being leased by the Philippines while the remaining three aircraft were scheduled for lease.
The newspaper quoted the Japanese ministry of defense as saying the donation will take effect in March of next year.
A change in law made during the last ordinary session of parliament led to the deal. The amendment helps facilitate the Japanese government to donate equipment to developing allied nations.
Nikkei reported that the Philippines previously had a leasing agreement set up with Japan, but that it recently asked to take the aircraft for free.
The Philippines is in a dispute with China over small islands and shoals in the South China Sea. China has occupied several and built military facilities on them.
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