The Kenora Veterinary Clinic is looking at a 10,000-foot expansion.
It would be called the Northern Ontario Animal Health and Wellness Centre.
Kenora city council has approved a $263,000 contribution towards the $5.36 million building costs.
Initially, the Vet Clinic, in talks with the city, had requested $400,000.
The contribution is to be funded through the Future Land Development Reserve.
The clinic says it would involve the expansion of existing services and include other specialty services such as orthopedic surgeries, cardiac ultrasounds and animal physiotherapy.
It says it would be the first of its kind in northern Ontario.
Overall, the expansion would create nine new positions.