In September it recalled more than one million hybrid cars globally due to a problem that could cause fires.
The company says the issue differs from problems with the Prius fail-safe mode that were addressed in the 2014 and 2015 recalls.
Mazda Motor Corp., which is in a technology alliance with Toyota, will also recall in Japan 9,335 Axela compact cars with the same hybrid system produced from October 2013 to October 2014.
Power steering and braking would still work, but a stall at a fast speed could increase the risk of a crash.
In a statement from Toyota cited by Reuters, the Japanese vehicle giant said the fault arises when the cars fail to enter "fail-safe driving mode as intended".
It also said it was in contact with customers and commercial partners to ensure the fault in the affected vehicles would be rectified once the software updates are available.
"There have been no incidence of injury or accident in Australia because of the fault", a Toyota spokesperson told 9NEWS. In November 2017, Toyota recalled the 2012-2015 Prius Plug-in for fuses that could similarly shut down the entire auto while driving.
The vehicle maker said that it was not aware of any crashes due to the issue in Japan.
"Toyota has found that in rare situations, the vehicle may not enter a failsafe driving mode as intended".
Auto owners of Prius, Prius + and Auris hybrid models are advised to ensure the software on their vehicle is updated - but drivers do not need to do anything just yet.
When that happens, "the vehicle could lose power and stall".