Mayor Ray Nagin's office said the celebration would last eight days instead of the usual 11 days of revelry. It will mark the 150th year of Mardi Gras.

Police chief Warren Riley had said the carnival would have to be cut to six days and could not go through its traditional route on historic St. Charles Street.

But under the city's plan unveiled Wednesday, the celebrations will take place for two days, February 18-19, and then for six days, between February

The "krewes" who ride the ornate floats will also roll down St Charles Street, under the mayor's plan.

The city acknowledged that it has to find an estimated 1.5 million dollars to pay overtime to police, fire and medical workers.

About half of the city's employees, or 3,000 people, were laid off in October.

Police, city officials and krewe captains "came together to accommodate the krewes' needs while working within the challenging financial environment the city faces," the city said in a statement.

Hurricane Katrina, which slammed the city August 29, killed hundreds of people.