The LCBO will reportedly no longer have a monopoly on the sale of recreational marijuana when it becomes legal this October.
According to a report by the Globe and Mail, the Ontario PC government will instead turn to private retailers with licenses granted by the LCBO.
Finance Minister Vic Fedeli and Attorney-General Caroline Mulroney are reportedly expected to make the announcement as early as next week.
This comes just three months before the first Ontario Cannabis Store (OCS) is scheduled to open.
Last September, the province announced it plans to open 150 standalone stores to sell legalized marijuana by 2020, with the first 40 slated to open this summer.
Job postings for the OCS have already been online for several months.
A number of illegal cannabis shops are already running in Toronto and, in many cases, have been the targets of multiple raids by police.