Health Canada says the agency is monitoring the health effects of the oil used in the popular buttercream recipe and will have more to say about it soon.
The health agency says it will provide updates on its progress in the coming weeks.
The Canadian Food Inspection Agency says there have been no reports of adverse reactions to the product.
The agency says the oil in the buttercream is from a variety of oils, but has yet to determine the source.
Health Canada says it is working closely with industry to find a safer and more environmentally-friendly way to process the butter cream recipe.
In a statement, the agency said it has worked closely with the Canadian Association of Buttercream Producers and the Dairy Farmers of Canada.
It says there are multiple approaches being considered to reduce the risk of food borne illness and death, and that the government has been in contact with industry and others to share ideas on how to address the concerns.
The Canadian Food Standards Agency has been working with industry, and the FDA, to address concerns raised about the safety of the butter product, said agency spokeswoman Amy Smith.