BioWare general manager Ray Muzyka told consumer site GameSpot that the new 30-person team would "work in partnership with the existing EA Montreal team" while still reporting to Muzyka and BioWare president Greg Zeschuk.
BioWare's headquarters are Edmonton, Alberta, where development of Mass Effect 2 is already underway.
EA purchased BioWare in 2007.
According to the report, Muzyka said the BioWare team at EA Montreal may also assist in future development of the upcoming RPG Dragon Age: Origins and the MMORPG Star Wars: The Old Republic.
The first Mass Effect debuted on Xbox 360 in 2007, and on PC in 2008. EA CEO John Riccitiello recently said that Mass Effect 2 is a "multiplatform" release, stopping short of confirming whether or not the franchise is coming to PS3 for the first time.