Canada's manufacturers and export lobby group says a deal has been reached with Michigan to build a second bridge between Windsor and Detroit.
No official confirmation has been given, but the Canadian Manufacturers and Exporters group says the federal cabinet is expected to give approval later this week.
Other reports say a joint announcement could be made as early as the end of the week.
About one-quarter of all Canada-U.S. trade currently flows across the Ambassador Bridge.
But the bridge is close to a 100-years-old and bottlenecks are not uncommon.
CME policy head Mathew Wilson says a new crossing is critical to Canada's economic competitiveness and job growth.