The state of New Jersey is attempting to lure one of Wall Street’s iconic investment banking firms across the Hudson.

The New Jersey Economic Development Authority’s board yesterday approved a $20 million business employment incentive package for Lehman Brothers to relocate 400 jobs from New York City and create 100 new jobs. If accepted, the 500 additional jobs would push the total number of Lehman employees working in New Jersey to 2,200.

The mayor of Jersey City, Jerramiah Healy, said the glut of available office space ranks Jersey City as the nation’s 12th-largest downtown in terms of office space. “We are pleased that Lehman Brothers is considering expanding its operations in Jersey City and that new job opportunities may be created for our residents,” Mr. Healy said in a statement. Headquartered at 745 Seventh Ave., Lehman Brothers is the fourth-largest American securities firm by market value. It employed 26,189 people in America as of the second quarter. A spokesman for the firm was unavailable for comment.

A spokeswoman for New York’s Economic Development Corp., Janel Patterson, issued a statement: “We are committed to working with Lehman Brothers, as we are with any business, to help the company thrive and keep jobs here. That being said, the Mayor has made clear that we will not provide incentives absent the creation of new jobs or significant capital investment. The success of this policy is borne out by the fact that, at least so far this year, in a very tough economic environment, the City has been one of the few places in the country to continue to increase employment.”