The newspaper cited municipal building permit documents for the technology giant's plans to open at the 225-store Yorkdale shopping center in northwest Toronto later this year.
The shopping mecca is adding 40 new stores in a $220 million expansion, the Star said.
One of the existing Yorkdale stores belongs to Microsoft chief competitor, Apple, which already has 22 stores in Canada, seven of them in the Toronto area. Apple is also opening a new retail outlet Saturday in London, Ontario, the company said.
In the United States, Microsoft has 25 retail outlets.
Canadian customers loyal to Microsoft were taken aback this week when the company said its upcoming Surface tablets would only be available at retail outlets.
There was no indication where Canadians outside of Toronto could shop.
Canada's population of 34 million makes it about one-tenth the size of the U.S. market.