As federal officials search for a new location for the trial of the September 11th terror attack suspects, the Obama administration is reportedly offering a $200 million fund for security costs for any city willing to host it.

Sources told the Associated Press that the money will be included in the president's budget, which will be released Monday.

The news came after the Obama administration decided to abandon its original plan to try Khalid Sheikh Mohammed, the self-confessed mastermind of the September 11th terrorist attacks, and four other alleged terrorists at the federal courthouse on Pearl Street in Lower Manhattan.

The New York City Police Department estimated that security for the trial, which could run for three to five years, would cost more than $200 million every year.

In recent days, New York elected officials almost unanimously expressed serious concern over holding the trial in the city.

Mayor Michael Bloomberg, who initially backed holding the trial in the city, cited this week the potential disruption to residents and businesses, and said the strain on police resources as reasons the trial should be moved.

Governor David Paterson, who opposed the plan from the start, said holding the trial elsewhere is the right move.

"We asked the federal government and they are listening. As the president said in his state of the union address, 'I'm listening.' And they did listen to us yesterday,” said the governor on Friday.

Some of the other locations floated for the trial are the United States Military Academy at West Point, the Federal Correctional Institution in Otisville, N.Y. and Stewart Air National Guard Base in Newburgh, N.Y.

Mayor Nicholas Valentine of Newburgh said he would be happy to host the trial in his city's newly-remodeled city courthouse.

"I'm just asking for a fair shake to be in the mix. And also saying that, in the end, with the tourists, with the amount of people coming here and the amount of media coverage, Newburgh would truly be on the map," said Valentine.

Valentine also said he would like to see a federal aid package if the city hosts the trials.