Federal Justice Minister David Lametti said he issued an order to that effect Tuesday.
“It is important that our Canadian legal process is completed so that all parties, including victims, have an opportunity to see justice served,” he said in a tweet.
Nygard, 80, was first arrested in Winnipeg in 2020 under the Extradition Act after being charged with nine sex-related counts in New York.
Authorities in the U.S. allege he used his position in the fashion industry to lure women and girls.
The extradition request from the U.S. laid out allegations from seven complainants who are expected to testify at his trial in that country.
The complainants allege they were coerced into having sex with Nygard through financial means or physical force.
Nygard, who has denied the allegations through his lawyer, had agreed to be extradited to the U.S. to face a charge of sex trafficking.
The former head of a multimillion-dollar clothing company also faces a class-action lawsuit in the U.S. involving 57 women with similar allegations.
Last fall, Nygard was also charged in Toronto with six counts of sexual assault and three counts of forcible confinement in alleged incidents dating back to the late 1980s and mid-2000s. He has denied those allegations as well.
Earlier this year, a Toronto court rejected his bid to be released on bail. The evidence and reasons presented in court are under a publication ban.
Nygard was previously denied bail in the extradition case, meaning he would not have been released even if he received bail in Toronto, according to the federal Department of Justice.