Omar Khadr will spend his remaining year in Guantanamo Bay, Cuba, in the highest-security section of the detention facility.
Khadr was sentenced to 40 years in prison for war crimes Sunday, but the decision by a U.S. military panel was largely symbolic.
A pretrial plea deal capped Khadr's sentence at eight years, with the first year to be served at the naval base detention centre.
CBC's Laurie Graham says Toronto-born Khadr, 24, has been staying in a section of the prison where inmates tend to be compliant.
"He, as part of this deal, will go to a different camp, which is maximum-security," she told CBC News Network. "There's been a lot of difficulties there. Some infighting, aggression.... And he will be surrounded by more aggressive inmates."
The Canadian Embassy said in a memo dated Oct. 23 the Canadian government "is inclined to favourably consider" a request for a transfer to Canada for Khadr to serve the rest of his sentence after another year at Guantanamo.
Khadr is not allowed to fly into U.S. airspace, according to the plea deal, Graham said.
Once in Canada, he'll be subject to normal Canadian laws and will be able to apply for parole after serving one-third of his sentence.
Khadr will not be able to profit from his story.
"If he writes a book, any profit, any money made, will go back to the Canadian government," she said.
U.S. military prosecutors had called Khadr a radical jihadist, but U.S. Navy Capt. John Murphy softened his tone when he was asked whether Khadr will pose a threat when he's eventually set free in Canada.
"By returning him to his own country within a year, that presents the best prospects for his rehabilitation," he said.
Dennis Edney, Khadr's Canadian lawyer, says that when he is released Khadr will not live with his Toronto family members, who have openly supported al-Qaeda.
"He's not a radical jihadist," he said. "He's a victim. He's a victim of his family, his father, adults, and he's a victim of this system."
Khadr pleaded guilty to five charges brought by the U.S. military, including killing Sgt. 1st Class Christopher Speer in Afghanistan in July 2002 when he was 15 years old. He has been in custody since then.