A failsafe mode created to engage in the event of a hybrid system fault may not kick in because of a software glitch, causing the vehicle to stall, according to a company statement.
"If this occurs, the vehicle could lose power and stall".
Toyota is recalling 975,000 cars in the United States for stalling and airbag problems, the company said on Friday.
Toyota did not say if owners would see an airbag warning light on the instrument panel or if it knew of any reported accidents. Prius hybrid vehicle at the visitor center of the company's Tsutsumi plant in Toyota City, Aichi, Japan, on Friday, Dec. 8, 2017.
Affected drivers will be sent a letter asking them to book in their vehicle for a software upgrade at their nearest Toyota retailer.
Some of the cars have already been recalled for a separate drivetrain issue.
A Toyota dealer in California highlighted the issue earlier this year when it sued Toyota over what it claimed was an inadequate fix for the safety problem.
Of the cars affected, over 1.2 million vehicles were sold in Japan, 830,000 in North America and 290,000 in Europe, she said.
According to Toyota's release, this issue was also addressed in two prior recalls from 2014 and 2015.
It also said that although it had received three reports in Japan related to the issue, it was unaware of any crashes in the country.
Every year we survey thousands of drivers to find out if they've had any problems with their auto.
In 2016, it announced the recall of 3.37 million vehicles globally over problems with airbags and a fuel emission control unit.