Ukraine would give up the eastern Donbass region to Russia under a 28-point peace plan backed by US President Donald Trump, according to a draft seen by AFP news agency.
As well as giving up Donbass — comprising the Luhansk and Donetsk regions that Ukraine still controls — Kiev would agree to limit its army to 600,000 personnel.
European fighter jets would be based in Poland to protect Ukraine, but no NATO troops would be stationed in the country, and Kiev would agree never to join the military alliance, according to the draft.
Russia would meanwhile be readmitted to the G8 group of nations and be integrated back into the global economy under the plan, which US officials said was still a "working document."
"The president supports this plan. It's a good plan for both Russia and Ukraine," White House Press Secretary Karoline Leavitt told reporters.
Trump's special envoy Steve Witkoff and US Secretary of State Marco Rubio had been "quietly" working on the plan with both Russia and Ukraine for around a month, Leavitt said.
She rejected concerns that the plan echoes many of Moscow's maximalist demands.
Russia to be 'reintegrated into global economy'
Under the document seen by AFP, "Crimea, Lugansk and Donetsk will be recognised as de facto Russian, including by the United States."
Kiev still partly holds Luhansk and Donetsk, which together make up the Donbass industrial belt on the front line of the war.
Crimea was annexed by Russia in 2014.
Areas from which Ukraine has withdrawn in Donetsk would be deemed a demilitarised zone which Russian forces will not enter, according to the plan.
The southern regions of Kherson and Zaporizhzhia — which Russia claims to have annexed — will be "frozen along the line of contact," it said.
The plan for Donbass, Kherson and Zaporizhzhia corresponds to Moscow's previous demands.
Ukraine's Zaporizhzhia nuclear plant, occupied by Russian forces since March 2022, would be supervised by the International Atomic Energy Authority and the electricity it produces be shared between Russia and Ukraine, the plan says.
Under the proposed deal, Russia would be "reintegrated into the global economy" after nearly four years of tough sanctions and be allowed back into the G8.
"It is expected that Russia will not invade neighbouring countries and NATO will not expand further," it says.
But all sanctions would snap back if Russia invades Ukraine again — "in addition to a decisive coordinated military response."
Zelenskyy seeks 'dignified peace'
Earlier Ukrainian President Volodymyr Zelenskyy said that any agreement to end the war with Russia must deliver a "dignified peace."
"Ukraine needs peace… A dignified peace — so that the conditions are with respect for our independence, our sovereignty and the dignity of the Ukrainian people,” Zelenskyy said.
Details of the US proposal, reported widely in Western media, suggest Ukraine is being asked to concede to Russia’s key demands while receiving little in return.
The draft reportedly calls for the "recognition of Crimea and other regions that the Russians have taken."
Russia occupies around a fifth of Ukraine, much of it devastated by years of fighting.
The Kremlin claims to have annexed five regions — Donetsk, Luhansk, Zaporizhzhia and Kherson in 2022, and Crimea in 2014.
Moscow has previously demanded that Ukraine withdraw its troops completely from Donetsk and Luhansk in exchange for freezing the front line in southern Zaporizhzhia and Kherson.
