Towers deal for World Trade Center site seen this week

NEW YORK (Reuters) - A deal likely to speed construction of two new towers on the site of the former World Trade Center in Manhattan is expected this week, a source familiar with the matter said on Wednesday.

The Port Authority of New York and New Jersey is on Thursday expected to finalize its development plan for the towers planned by Larry Silverstein, who leased the twin tower complex shortly before it was destroyed in the attacks of September 11, 2001, the source said.

The bi-state agency's board should vote on the deal with the developer and the final agreement will largely mirror the framework accord that was reached in March, according to the source who requested anonymity.

That March framework included hundreds of millions of dollars of several forms of state and city aid for the development at the Ground Zero site.

A spokesmen for Silverstein declined comment.

The Port Authority's agenda for Thursday's board meeting includes an update on the World Trade Center. An agency spokesman declined comment.

The vast project has repeatedly stalled due to lawsuits, clashes over designs and security, and feuds over control and financing between the Port Authority and Silverstein. The developer, who is building a total of three towers, has already made considerable progress with one of his skyscrapers.

(Reporting by Joan Gralla; Editing by Andrew Hay)