The apparent openness by both sides to some form of negotiations came as civilian casualties have soared in recent months, with the Taliban increasingly targeting towns and cities in response to a new and more aggressive US military policy ordered by President Donald Trump.
Ghani disclosed the framework at the Kabul Process, a regional conference in the Afghan capital focused on bringing peace to the country. He called for a truce, after which the Taliban could become a political party and contest elections.
"Now the decision is in your hands, accept peace... and let's bring stability to this country," he added.
In return, Ghani said the militants should officially recognise the Afghan government and constitution, a perennial sticking point in past attempts to open talks.
There was no immediate response to Ghani's offer from the Taliban.
However the group's spokesman Zabiullah Mujahid maligned the Kabul Process, tweeting that the conference sought the Taliban's "surrender" at a time when it is "without a doubt a force that has defeated an international arrogant power like America with all its allies and tools at disposal".
On Monday the Taliban said it was prepared to enter direct talks with the US to find a "peaceful solution" to more than 16 years of war.
That statement however made no mention of negotiating with the Afghan government -- a condition which the US has long stated is vital to any peace process.
Observers were cautious about the impact of Ghani's proposal, which includes offers previously made to the Taliban -- though this is the first time they have been arranged in a "clean peace plan" and announced at a multi-national conference, noted Afghan political analyst Abdul Bari.
Kabul is hosting the second round of the peace conference at which representatives from 25 countries will discuss counter-terrorism and conflict resolution strategies. US officials have described the current situation in the war as a stalemate.
The fighting continued elsewhere in the country today.
Officials in southern Kandahar and Uruzgan accused the Taliban of attacking a police checkpoint between the two provinces, killing five people and kidnapping at least 19 car passengers.
No group has yet issued any claim of responsibility for the attack.
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