A plan is in the works to restore millions in funding lost when the city and teachers union failed to meet a deadline for a new teacher evaluation system.

State Assembly Speaker Sheldon Silver says he's planning to include the $260 million in his budget proposal.

Currently, the governor has not included the money in his proposal.

The two will need to be reconciled next month as both sides strive to meet the April 1 budget deadline.

"We always are talking to the governor's office, to the speaker's office, and the majority leader's or two majority leaders offices. And I think they fully understand that we would like to see those moneys put back in the budget," said mayor Michael Bloomberg.

A judge ordered an injunction to prevent the state from taking away the funds.

A hearing date has not yet been set, and so far there are no talks scheduled between the city and teachers union to hash out a teacher evaluation system.