The provincial government says the Big River lumber mill will directly employ up to 100 people and could mean another 250 jobs in timber harvesting, trucking, road construction and reforestation.
Carrier Lumber purchased the Big River facility, which is the largest mill in the province, in 2011.
Premier Brad Wall says the sawmill will account for more than 40 per cent of Saskatchewan's lumber production capacity.
Wall says reopening the mill will help Saskatchewan regain its market share in the United States and in Asian countries.
The sawmill has an annual production capacity of 250 million board feet.