The FDA has given the team the go-ahead to begin testing on humans next month.
The research is led by a virologist at the University of Western Ontario.
Researchers say the vaccine was shown to stimulate a strong immune response in early testing.
The head of the research team says he believes the vaccine could save the lives of millions of people around the world.
"For the first time, I feel very happy. Happy, confident, and comfortable to initiate these human trials," says Dr. Chil-Yong Kang. He is the HIV Researcher at the University of Western Ontario.
Kang says previous clinical trials have failed because they used a live form of the virus. His team's vaccine is unique because it uses a dead HIV virus, which will not cause HIV in recipients.
If everything works out, Kang says it would still be at least five years before the vaccine was ready to go to market.