Too Human studio Silicon Knights has been granted around $4m from the Canadian government for a new multi-platform title due within five years.
The money is set to create 65 new jobs at the studio straight away.
Canadian newspaper The Tribune reported that the grant was announced by Canadian MP Rick Dykstra at the Silcon Knights office in St. Catherines last Friday.
"This is going to benefit Silicon Knights in ways that are profound and long-lasting," said company president Denis Dyack.
He went on to say that the new title planned from investment will be built for next generation consoles, and that he expected other jobs to be created during its development.
"We are blown away and we’re happy with the support we’re getting," he said. "It is something that couldn’t have come at a better time."
MP Dykstra said that the Canadian government are providing taxpayer money to a private company as there are no competing businesses to be negatively impacted by the decision.
"Their growth and their success is very important to our community," he said.
"Not only in terms of job creation but also in terms of attracting and retaining the types of highly skilled workers Niagara needs to prosper."