The state later this week will seek final approval for the $900 million plan to remake the landmarked Farley Post Office building into Moynihan Station.

The Empire State Development Corporation yesterday approved the plan, which calls for new train hubs for New Jersey Transit and Long Island Rail Road, a post office, retail outlets, and possibly a hotel across Seventh Avenue from Penn Station. The approval paves the way for a vote by the state’s Public Authorities Control Board on Friday.

The state’s leading development official, Charles Gargano, said he is confident the proposal will pass the state board, which was made famous last June when it turned down Mayor Bloomberg’s plan to build a football stadium on the far West Side.

Some observers who hoped the Moynihan project would be combined with a larger plan to move Madison Square Garden and redevelop the existing Penn Station were surprised by the state’s decision to seek final approval this week.

This spring, the state’s developers of the Moynihan project, the Related Companies and Vornado Realty Trust, introduced a more ambitious plan to demolish Madison Square Garden and rebuild it at the west side of the Farley building, behind Moynihan Station. The developers would open up the existing Penn Station to daylight with vaulted glass ceilings, expand its capacity, and develop two or three towers on the current Garden site, between Seventh and Eighth avenues and 31st and 33rd streets.

The plan received rave reviews from the city and development officials, and some expected the state’s Moynihan plan to be delayed.

Yesterday, Mr. Gargano said the developers’ plan would constitute an “improvement” to Penn Station, but that Moynihan Station was the state’s priority. He said the Madison Square Garden move could be included in the Moynihan project as a “phase two.”

The president of the Partnership for New York City, Kathryn Wylde, said the state’s push for Moynihan is “premature.”

“I think we should make sure that when the PACB votes, it is on the entire project,” Ms. Wylde said. “The MSG piece is critical to making this project really work and maximize the benefits.”

“Why approve a partial project as opposed to the whole thing?”Ms. Wylde said.

Still, some planning organizations applauded the state’s effort.The president of the Municipal Art Society, Kent Barwick, said approval of the Moynihan Station plan is long overdue.He said further delay could cost the city and state the federal funding for the project.

“I think there is more going one here than a chance for Governor Pataki to hold a spade,” Mr. Barwick said. “The danger is that Congress would take away the money if nothing happens.”

The Public Authorities Control Board includes representatives of Governor Pataki, the Assembly speaker, Sheldon Silver, and the state Senate majority leader, Joseph Bruno. Messrs. Bruno and Pataki are supportive of the Moynihan plan; Mr. Silver’s position is unknown.