Canadian Blood Services will develop a system and database to coordinate organ donations in all territories and provinces except Quebec, which has its own agency and might join later on, the Globe and Mail reported.
Graham Sher, the chief executive officer of the blood agency told the newspaper the system will mean increased availability of organs nationwide.
"Canada has a dismal record for organ donation, and that has to change," Sher said.
Statistics from the Canadian Organ Replacement Register show there were 4,195 Canadians awaiting organ transplants at the end of 2007, but only 2,188 transplants were performed during the year.
Prior to the funding announcement, Canada stood out as the only developed country without a national transplant system, the newspaper said.