Photoshop or most other image editing programs offer a display grid and I have used this many times to reproduce a picture. A little tip if you are working from a photo you may want to lighten it first by placing it on top of a white background and reducing the opacity using the layers window.
I always convert my image to a grayscale first and play with the brightness and contrast to make it easier to convert to a line drawing.
Use the menu item View/Grid,,, then go to your preferences and grid settings to type in the desired grid for your trace.
Once your grid is right use the line tool and the snap to grid feature to mark off your desired grid on a NEW layer.
Print and transfer the image to canvas.
I have also used Illustrator to print oversized inages (it prints in sections that fit a page and they can be cut and pieced back together with very little effort)
If you have any questions on my process feel free to e-mail me using the link on my profile-hope this helps!!
here is a snapshot.