Prime Minister Justin Trudeau will offer the provinces a "significant" increase to the Canada Health Transfer and additional money if they agree to one-on-one deals targeting specific problem areas in the health-care system.
A senior government official with knowledge of the plan says Trudeau will lay out a 10-year offer when he meets with the country's 13 premiers in Ottawa on Tuesday.
The Canadian Press agreed to grant the official anonymity because they were not authorized to speak publicly about the matter.
The premiers say Ottawa contributes about 22 per cent of what the provinces spend on health care and they want that to go up to 35 per cent.
Trudeau will insist some of the increased federal cash go to specific areas including addressing worker shortages, improving data collection and reducing surgical backlogs.
The federal Liberals say Tuesday's meeting will not result in a final deal, and that health ministers will continue to work out the details over the next several weeks.