The proposal offered another potential compromise on control of the Donbas region, which has been a major sticking point in peace negotiations.
Zelenskiy said the US proposed the creation of a "free economic zone" which he said should be demilitarised.
But it was unclear what that idea would mean for governance or development of the region.
A similar arrangement could be possible for the area around the Zaporizhzhia nuclear power plant, which is currently under Russian control, Zelenskiy said.
He said any peace plan would need to be put to a referendum.
Zelenskiy spoke to reporters to describe an overarching 20-point plan that negotiators from Ukraine and the US hammered out in Florida in recent days although he said many details are still being discussed.
Russia has given no indication that it will agree to any kind of withdrawal from land it has seized.
Asked about the plan, Kremlin spokesman Dmitry Peskov said on Wednesday that Russia would decide its position based on information received by Russian presidential envoy Kirill Dmitriev, who met with US envoys in Florida over the weekend.
Zelenskiy said figuring out control of the Donbas region is "the most difficult point".
Meanwhile, on the Zaporizhzhia nuclear power plant, the US has proposed creating a consortium with Ukraine and Russia, in which each party would have an equal stake.
Zelenskiy countered with a proposal for a joint venture between the United States and Ukraine, in which the US side would be able to decide how to distribute their share, including giving some of it to Russia.
Zelenskiy acknowledged that the US has not yet accepted Ukraine's counter-proposals.
"But we have significantly brought most of the positions closer together," Zelenskiy said.
"In principle, all other consensus in this agreement has been found between us and them."
Creating the demilitarised economic zone in the Donbas would require difficult discussions on how far troops would be required to move back and where international forces would be stationed, Zelenskiy said, adding that it should discussed at the leaders level.
The working US-Ukraine draft also proposes that Russian forces withdraw from the Dnipropetrovsk, Mykolaiv, Sumy and Kharkiv regions.
Zelenskyy envisions that international forces could be located along certain points of the contact line within the zone to monitor the implementation of the agreement.
Ukraine also proposes that the occupied city of Enerhodar, which is the closest city to the Zaporizhzhia power plant, become a demilitarised free economic zone, Zelenskiy said.
This point required 15 hours of discussions with the US, he said, and no agreement was reached.
For now, the US proposes that the plant be jointly operated by Ukraine, the US and Russia, with each side controlling a 33 per cent stake in the enterprise - a plan Zelenskiy called "not entirely realistic".
"How can you have joint commerce with the Russians after everything?" he asked.
The working draft ensures that Ukraine will receive "strong" security guarantees that would require Ukraine's partners to act in the event of renewed Russian aggression.
That would mirror NATO's Article 5, which says an armed attack on one member of the alliance is an attack on all.
Zelenskiy said a separate document with the U.S. will outline these guarantees.
It will detail the conditions under which security will be provided, particularly in the event of another Russian assault, and it will establish a mechanism to monitor any ceasefire.
The document will be signed with the main agreement to end the war, Zelenskiy said.
The draft proposal also requires Ukraine to hold elections after the signing of the agreement.
Zelenskiy's five-year term was scheduled to end in May 2024 but elections were put off due to Russia's invasion.
