Canada has announced that it is contributing $50 million to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA).
Some $40 million would be allocated over two years to assist the health and education efforts of the refugee agency, a statement said.
Another $10 million is aimed at helping 460,000 Palestinian refugees in Syria and Lebanon.
International Development Minister Marie-Claude Bibeau said Canada's new contribution would improve lives and "protect the human dignity" of millions of Palestinian refugees.
"This new funding to UNRWA is urgently needed, and it will bring some predictability to the agency as the needs on the ground are increasing," Bibeau added.
UNRWA has been suffering from a budget deficit resulting from the ending of US funding.