Orr, appointed by Michigan Gov. Rick Snyder last year to manage the beleaguered city, is expected to propose widespread cuts in pensions and other employee benefits in an attempt to close an $18.5 billion funding gap—as much as $3.5 billion of that in pension funds.
"Mr. Orr and his team believe the Plan offers the most effective and efficient way for Detroit to resolve its numerous issues, revitalize itself and continue with its efforts to once again become an attractive place in which to live, work and invest," according to the statement, which does not detail the proposal.
Also Wednesday, the Detroit Institute of Arts announced a $100 million fundraising drive to help preserve the city-owned art collection and shore up the pension plans.
(Read more: Pledge boosts private support for Detroit rescue)
The money is on top of $370 million pledged by private foundations and another $350 million in state funding proposed by Snyder, bringing the total rescue fund, potentially, to $820 million.