Earlier on Thursday Kan said that he would step down after handling issues related to his country's triple disaster - the March 11 earthquake, tsunami and subsequent nuclear crisis.
Parliament's lower house rejected the opposition-sponsored no-confidence motion by 293 votes to 152.
"Once the post-quake reconstruction efforts are settled, I will pass on my responsibility to younger generations," he said.
"The nuclear crisis is ongoing, and I will make my utmost efforts to end the crisis and move forward with post-quake reconstruction works."
Kan, who became prime minister just a year ago, has been criticised for delays in construction of temporary housing for evacuees from the March 11 disaster, lack of transparency about evacuation information, and a perceived lack of leadership.
Al Jazeera's Marga Ortigas, reporting from Tokyo, said that Kan "addressed members of his [Democratic Party of Japan] and the public at large, apologising for the trouble he has caused".
Our correspondent said Kan suggested political battles should wait and mentioned a likely time line of six months until his resignation.
Kan will likely struggle to forge deals with the opposition in a divided parliament, as the government tries to thrash out policies that rein in Japan's rising public debt
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