TIMBER company Gunns has accepted a $23 million offer from the Tasmanian government to cease logging in the state's native forests.

The state government has been in talks with Gunns to push ahead with the federal government's $276 million forestry restructure.

Premier Lara Giddings said the company had accepted the $23 million offer as well as $11.5 million to resolve the company's debts with Forestry Tasmania.

"The state government has acted on legal and departmental advice that a commercial settlement is the best way to progress the IGA," Ms Giddings said, referring to the intergovernmental agreement on Tasmania's forests.