Canada is not likely to block Nortel Networks' planned $1.13 billion sale of wireless assets to Sweden's Ericsson, the Globe and Mail reported on its website.

The Canadian government is evaluating the deal based on the balance sheet value of the assets, which Nortel says is C$149 million ($135.3 million), according to the paper.

The Investment Canada Act normally requires a government review for foreign takeovers of a Canadian business worth more than C$312 million.

Canadian Blackberry maker Research In Motion has lobbied the government to block the sale. RIM argues that keeping Nortel's technology in Canada is vital to national security.

The sale will only be stopped if the Canadian government has national security concerns or if it concludes that Nortel grossly undervalued the assets on its books, the paper said.

The Canadian Ministry of Industry did not immediately return a Reuters email seeking comment that was sent outside of normal business hours.

($1=1.101 Canadian Dollar)

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Jon Loades-Carter)

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