The Canadian Forces Future Strategic Airlifter Project has studied alternatives since 2002, including long-term leasing arrangements. The assumption was that the military was pushing for the C-17 even though the outright purchase of even a small number was considered beyond the reach of the current defence budget.

The current Conservative Government promised during the January 2006 federal election campaign to purchase three or four strategic airlifters, which was thought to be thinly veiled reference to the C-17. Minister of National Defence Gordon O'Connor announced on June 29, 2006, that the CF would acquire four strategic lift aircraft at a cost of C$1.8 billion (US$1.6 billion). On July 5 the Government issued a notice on the MERX purchasing system that it intended to negotiate directly with Boeing for the purchase of four aircraft.

On February 1, 2007 the Canadian government awarded the contract for four C-17s for delivery beginning in August 2007. Similar to Australia, Canada will be granted airframes originally slated for the U.S. Air Force, to accelerate delivery. To reduce costs, the Canadian government is purchasing the airframes from Boeing, while purchasing all the Pratt & Whitney engines from a USAF supply. This emulates the USAF approach developed in recent years to split the purchase in order to reduce costs from integrating the engines with the airframe.