NEW YORK — Citigroup said today it reached a deal that will give the government up to a 36 percent stake in the struggling bank.

The government, along with other private investors, will convert some of their preferred stock in Citi to common shares.

Citi will offer to exchange up to $27.5 billion of its existing preferred stock held by private investors at a conversion price of $3.25 per share, a 32 percent premium over Thursday's closing price of $2.46.

If the maximum amount of preferred stock is converted, current common stockholders will see their ownership stake fall to about 26 percent.

Citi has already received $45 billion in cash from the government and guarantees protecting it from the bulk of losses on $300 billion of risky investments.

As part of the agreement, Citi will suspend dividends on both its common stock and preferred shares.

Citi will also reshape its board of directors, Richard Parsons, the bank's chairman, said in a statement.