Ottawa is considering buying land claimed by Six Nations and returning it to the band to resolve native demands a settlement in the Caledonia standoff must include land.
The federal government has offered Six Nations $125 million to resolve four claims, but the offer is only contingent on natives ending their 16-month occupation of an one-time housing project and not staging more occupations.
Ottawa has said expropriation of land owned by third parties is not negotiable but one way around that is for Ottawa to buy properties in Haldimand and Brant (where land claims dominate) and return it to Six Nations.
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