The Western Australian Government has offered a man wrongfully convicted of murdering a Perth woman a multi-million dollar ex-gratia payment.

Andrew Mallard spent more than a decade behind bars for the 1994 murder of Mosman Park jeweller Pamela Lawrence. His conviction was later overturned.

The state's Attorney-General, Christian Porter, today announced Mr Mallard has been offered $3.25 million as what he describes as a 'gift' from the Government.

The offer is the largest in the state's history and comes after months of negotiations.

Mr Porter says it is up to Mr Mallard to accept the money, but if he does, that figure will be deducted from any other settlement he may reach in the courts.

"What path Mr Mallard chooses from here is entirely his own choice, and what we have done from here does not limit his choices in any way or form," he said.

He says the sum offered is a life-changing amount of money and Mr Mallard might never have to work again.

The Premier, Colin Barnett, has described it as a historic offer, and is urging Mr Mallard's friends and supporters, including the Shadow Attorney-General John Quigley, to accept the deal.

Mr Quigley says the amount offered is grossly insufficient and Mr Mallard will continue with legal action against those involved in his wrongful conviction.

"I don't think there's anyone in the community that would accept $3.25 million as fair compensation for being snatched off the street today, jailed for 12 and a half years and have their whole life destroyed," Mr Quigley said.

Mr Mallard says he's disappointed by the offer.

"This is a very, very delicate situation and and I will be conferring with my lawyers," he said.

Last year, Ray and Peter Mickelberg were awarded more than $1 million for their wrongful conviction over the 1982 Perth Mint swindle.