The Toronto Globe and Mail newspaper Tuesday said Health Canada will release its report this week, which could lead to an eventual restriction of its use.
The chemical is used in disposable water bottles, baby bottles, in resins that line food and drink cans and dental sealants.
Rick Smith, executive director of Environmental Defense, praised the decision.
"Bisphenol A ... threatens the health of every Canadian," he said. "Moving against it would be a hugely significant victory for public health and the environment."
After public consultation, Health Canada's report opens the door for the agency to declare bisphenol A toxic, which allows the government to impose curbs on its use, the newspaper said.
U.S. tests have found more than 90 percent of the population has trace residues of the chemical in their bodies, the report said.