Under the agreement, those suffering debilitating respiratory illnesses, such as asthma, could receive between $800,000 and more than $1 million. Approximately $1.5 million could go to compensate death claims. Anyone with a legal claim for fear of becoming sick, but with no qualifying injury, will receive $3,250.

A special insurance policy will provide coverage for certain blood and respiratory cancers diagnosed during the coverage period and will pay a benefit of up to $100,000.

The agreement limits attorneys' fees to 25 percent of the settlement, but according to court documents, plaintiffs could still be subject to additional attorneys' fees depending upon the agreement they signed with their attorneys.

Kenneth R. Feinberg, who served as the special master for the Sept. 11 Victim Compensation Fund and is currently serving as special master for the Trouble Asset Relief Program, will serve as neutral mediator for appeals of any claims denied by a neutral medical third-party evaluator.

In order for the agreement to take effect, 95 percent of participating plaintiffs must agree to the settlement.

"This settlement gives the plaintiffs immediate, fair and reasonable compensation, certainty and closure after years of protracted and costly litigation that will continue without this agreement," said Christine LaSala, president and chief executive officer of the WTC Captive, in a statement.

"This is a fair settlement of a difficult and complex case that will allow first responders and workers to be fairly compensated for injuries suffered following their work at Ground Zero," said New York Mayor Michael R. Bloomberg in the same statement.

He added that the city will continue to treat and monitor those who were present at Ground Zero.

One attorney, Marc J. Bern, a senior partner with the law firm Worby, Groner, Edelman & Napoli, Bern, LLP, representing 9,000 litigants, said the settlement "ensures guaranteed, immediate and just compensation...."

According to a source, Judge Hellerstein, who commented on the settlement today, said there was a major difference between this agreement and the prior one he was critical of.

He is quoted as saying, "This is a very good deal. I am very excited about this deal." He added that the agreement means plaintiffs will be "assured of a fair deal that puts money in their hand fast."