Jenna Talackova was expected to hold a news conference with high profile lawyer Gloria Allred to talk about the alleged discrimination.
Before the conference, a statement was released by Donald Trump’s New York based company who own the pageant.
The statement said that the 23-year-old model could compete in the event in May provided she meets “the legal gender recognition requirements of Canada and the standards established by other international competitions’.
Director of Miss Universe Canada, Denis Davila, previously said that Ms Talackova was disqualified because she broke rules when she lied on the an application form which stated contestants must be ‘naturally born females’.
Following her disqualification, pageant organisers were accused of being discriminatory.
Over 20,000 people signed a virtual petition on Change.org calling for Ms Talackova to be allowed to compete.
The only requirements stated on the Miss Universe Canada website is that to enter, women must be a Canadian citizen and between the ages of 18 and 27, making no reference to rules regarding sex change operations.