Oct 3 (Reuters) - The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.
** Canadian Prime Minister Stephen Harper will outline in Parliament on Friday the military contribution Canada is prepared to make to the fight against Islamic State militants, setting the state for a vote on this combat deployment Monday. The Prime Minister's Office made the announcement on Thursday evening. Canada has been asked by the United States to provide fighters and other aircraft to join air strikes against jihadist forces that have wreaked havoc in Iraq. (bit.ly/1pvHz0n)
** The Conservative government will post a dramatically smaller deficit for the most recent fiscal year, a $5.2 billion shortfall that represents an $11 billion improvement over the latest budget estimate. (bit.ly/1x5Kcer)
** After failing to find a buyer for Sears Canada Inc , its U.S. parent now is trying to shed most of its stake in a $380 million rights offering, raising questions about the fate of the struggling Canadian retail operation. (bit.ly/1nT4EPI)
** Canada could soon be sending its military into a combat mission in Iraq over the objections of both opposition parties, as Liberal Leader Justin Trudeau issued broad hints on Thursday that his party, like the New Democratic Party, wouldn't be on-side with the government. (bit.ly/1pKZXlb)
** The sale of TransCanada Corp's remaining 30 percent interest in Bison Pipeline LLC to its master limited partnership, TC PipeLines LP, for $215 million on Wednesday is the first step in delivering long-term value to core shareholders, says RBC Capital Markets analyst Robert Kwan. (bit.ly/1rQmZwf) (Compiled by Rama Venkat Raman in Bangalore)