In his annual state of the province speech, Selinger told a business luncheon the province is working to find new homes for residents of the Lake St. Martin First Nation.
Many residents have been in hotel rooms since 2011, when their community was flooded.
Selinger says the province has identified new land and has an agreement in principle with the federal government that could be finalized soon.
Selinger also announced $110 million in improvements to the Trans-Canada Highway between Winnipeg and the Ontario boundary.
The stretch of road will also be renamed for Terry Fox, who embarked on a historic cross-Canada run in 1980 for cancer research.