The New York Attorney General's office is negotiating with top Wall Street firms that received federal bailout money to forego executive bonuses this year, sources close to the attorney general told CNBC.

The efforts by New York Attorney General Andrew Cuomo also may expand to include capping non-executive bonus compensation. In addition, Cuomo has not ruled out trying to recoup previous years' bonuses for top executives, sources said.

The discussions involve firms that have received money under the $700 billion Wall Street bailout fund, known as the Troubled Asset Relief Program, or TARP.

Besides Wall Street financial institutions, Cuomo has also asked insurance giant American International Group to disclose more on its executive compensation. AIG has received billions in government money under the TARP.