The government is offering to take over anywhere from 40% to all of the World Trade Center site from Larry Silverstein, the developer who signed a 99-year-lease for the site just six weeks before the terrorist attacks of September 11, 2001.

Mr. Silverstein has two options under a plan presented to him yesterday by Governor Pataki, New York and New Jersey representatives of the Port Authority, and Mayor Bloomberg. He can either give up his rights to control the Freedom Tower and one other of the five planned commercial towers, agreeing to share about 40% of his remaining $3.2 billion in insurance proceeds, and benefiting from a proportional reduction in rent. Or the 74-year-old developer can take control of Tower 5, south of the Trade Center site, receive $50 million in cash, and give up most of his insurance money and the rest of his development rights at ground zero.

A spokesman for Mr. Silverstein, Bud Perrone, said the developer welcomes “the government’s willingness to resume negotiations” and will undertake a thorough review of the proposal.

Deputy Mayor Daniel Doctoroff told The New York Sun: “We are offering him two very attractive alternatives that are fair, given the rights that he has.”

“I don’t think there is a lot of room here,” Mr. Doctoroff said.

Negotiations between Mr. Silverstein, who has a legal right and obligation to construct 10 million square feet of commercial office space, and the Port Authority, which owns the site, have dragged on for months. Governor Pataki set a deadline of last month for a final deal, but his top aides walked out on negotiations and one accused Mr. Silverstein of being “greedy.”

Two weeks ago, it appeared as if a deal was close. Mr. Silverstein and state officials had hammered out a proposal similar to the site-sharing option presented yesterday. But divisions between the several government entities with interests at ground zero stymied the plan.

The New Jersey delegation of the Port Authority, led by its chairman Anthony Coscia and backed by Governor Corzine, said that deal was not financially sound for the bi-state agency, and they sought more money from the deal to be directed toward building a memorial at ground zero.

The Bloomberg administration was also critical of that deal, echoing previous criticism that Mr. Silverstein would default before completing half of the plan, leaving the city in the lurch. City officials have no direct voice in the negotiations, but have sought to influence a final plan through their control of $1.67 billion of tax-exempt Liberty Bonds.

Since that deal fell apart, government entities over the last two weeks have tried to create a unified plan through negotiations between the executive director of the Port Authority, Kenneth Ringler, who is a Pataki appointee, Mr. Coscia of New Jersey, Mr. Doctoroff, and a leading Pataki development official, John Cahill.

Mr. Pataki talked to Mr. Silverstein yesterday, and last evening, Mr. Coscia and Mr. Ringler presented the plan to Mr. Silverstein.

Government officials had apparently hoped to keep their offer to Mr. Silverstein private, but as word began leaking yesterday afternoon, the city, state, and Port Authority opted to go on the record with details of their joint proposals.

In the first option, the developer would maintain control of the three best building sites along Church Street, known as Towers 2, 3, and 4. Although he would still be involved in their construction, Mr. Silverstein would give up his rights to the Freedom Tower and Tower 5, which is slated for a site to the south of ground zero that has been tapped for residential development but still requires state approvals. Silverstein would also have an option to purchase the rights of the retail development planned for the site, valued at several hundred million dollars and now controlled by the Westfield Group.

To answer the city’s concerns about the financial feasibility of Mr. Silverstein’s original plan, the Port Authority and the city would offer to occupy 1.2 million square feet of commercial space at ground zero, or most likely about 65% of Tower 4. The state would take responsibility for leasing about 1 million square feet, or roughly 40% of the Freedom Tower.

In exchange for giving up a portion of his development rights, Mr. Silverstein would agree to a rent reduction in his monthly payments to the Port Authority, currently hovering around $10 million a month. According to Mr. Doctoroff, the reduction would be “more or less in proportion” with Mr. Silverstein giving up 38% of the site.

Mr. Silverstein would be required to share more than 40% of about $3.2 billion of insurance proceeds with the Port Authority and whatever developer ends up constructing the retail component slated for the site.

The developer would receive a total of about $2.6 billion in tax-exempt Liberty Bonds, and the rest, about $740 million, would be dedicated to the Port Authority or another developer the Port Authority would contract to build out the rest of ground zero.

Under this proposal, the Port Authority would contribute $100 million to the construction of the World Trade Center memorial, estimated to cost as much as $1 billion. Currently, more than $100 million has been privately raised.

Mr. Doctoroff called the suggestion that Mr. Silverstein would essentially be paying for the memorial contribution, “too simplistic”, and that there are lots of rewards and givebacks for all parties in the new proposal.

In the second proposal, Mr. Silverstein would only keep the building rights for Tower 5, to be built on the site of the former Deutsche Bank building, which was badly damaged in the terrorist attacks and is undergoing a long, costly demolition. The developer would also get $50 million in cash. Mr. Doctoroff said the total value of this option is about $300 million.

If Mr. Silverstein approves the proposal, it could be put before the board of the Port Authority for a final vote next week. Under the proposal, the Freedom Tower would begin construction this spring, as scheduled. Under contract, Mr. Silverstein would be required to begin construction on Towers 3 and 4 by next summer, and on Tower 2 by 2008. The entire site would be built out by 2012.