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A new round of settlement talks is scheduled for April.
While lawyers for the companies recently began a new round of settlement discussions, the two sides remain far apart.
In an earlier round of settlement efforts in 2004, Greek Cypriots rejected a United Nations peace plan, while Turkish Cypriots approved it.
That set off a new round of settlement negotiations, with Mrs. Fastow's lawyers trying to win a better deal and government prosecutors refusing.
Legal experts said that such a plan could prove extremely difficult to make but that the initiative could lead to a new round of settlement talks.
Mr. Klein had the confidence of President Bill Clinton and was left alone by Attorney General Janet Reno in the prior round of settlement talks.
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The proposal comes after the government settled with American Indians over similar issues and Congress provided money for a second round of settlements for black farmers.
The latest round of settlements included the case of Patrick Driscoll, 70, of Carmel, N.Y., a retired research director at Bell Communications who was on Flight 93.
The latest round of settlements leaves only seven suits pending out of more than 4,000, said Daren J. Beaudo, a BP spokesman.
The island has been divided for over 35 years despite many rounds of settlement talks.
Three previous rounds of settlement talks have broken off without agreement.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com