The Saskatchewan government says a transition committee and a family group representing residents believe a closure date of March 31, 2018, is more realistic for the Valley View Centre.
The original estimated closure date was 2016.
The province says the change is due to the time it has taken to develop new services for the residents of Valley View Centre.
The facility was built in 1955 for 1,500 people, but it is deteriorating.
The province announced in 2012 that Valley View's nearly 200 remaining residents would be moved to different types of community-based housing.