Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement regarding Churchill Falls, according to sources familiar with the situation who spoke to CBC News on the condition of anonymity.

The sources indicated that while two to three issues are still pending, they are nearing resolution, with both governments aiming to make a formal announcement early next week. A report by the Montreal-based newspaper, La Presse, suggested that a deal has been struck.

A representative from the N.L. premier’s office clarified that no final agreement has been formally signed yet. However, Ashley Politi, speaking on behalf of Tony Wakeham, mentioned significant progress in recent negotiations with Quebec and the Government of Canada regarding replacing the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island.

In response, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information in question, stating the ongoing nature of the situation. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement concerning the sale and development of Churchill Falls power.

The initial MOU was signed by Liberal former premier Andrew Furey with Quebec in December 2024, with the aim of replacing the contentious 1969 Churchill Falls contract and advancing the development of Gull Island hydroelectric project on the Churchill River.

Although the formalization of the MOU was anticipated by April 2026, this did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU by a committee, which subsequently concluded that the agreement was not in the public interest.

During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but has since emphasized the need for finalizing a deal first. Negotiations between Newfoundland and Labrador and Quebec resumed in June.

In response to the recent developments, the opposition Liberals expressed dissatisfaction with the lack of transparency in releasing information to the public. They highlighted the need for Premier Wakeham to be forthcoming with the people of Newfoundland and Labrador regarding the details of the agreement.