Bernie Ecclestone has put an offer on the table in an effort to save F1's biennial Nurburgring race.
Local politics have threatened the future of the event, with the new green-influenced ruling alliance in the Rhineland-Palatinate state baulking at the use of public funds for F1.
Circuit operator Jorg Lindner responded earlier this year by saying the race contract with F1 chief executive Ecclestone needs to be renegotiated.
On Tuesday, Nurburgring spokesman Karl-Heinz Steinkuhler said the state's financial involvement has already fallen from about EUR 13.5m to less than 10 million.
At the same time, meetings with Ecclestone have taken place.
"The proposal will now be discussed with (interior minister) Roger Lewentz," read a report by the German news agency DPA.
The Tageblatt newspaper said the Nurburgring's theme park operations including the rollercoaster will be scaled down, with about 60 jobs made redundant to cut costs.
A spokesman said the Nurburgring's future will thereafter be "highly profitable".