The Canadian Internet Registration Authority launched the final phase of a consultation process into the move last week.
Accents on French characters are expected to be permitted in Canadian domain names within nine to 18 months.
Kathryn Reynolds of the Internet Registration Authority says the move is part of a worldwide shift that's already well underway.
She points out that there are already domain names in Cyrillic and many other alphabets.
France has already finished its consultations into the matter and will soon allow accents on characters in domain names.