The tyre company made the offer just hours before today's disciplinary hearing involving the seven teams that refused to race due to safety concerns.
The teams face charges of bringing the sport into disrepute and could be docked championship points.
Michelin also offered to buy 20,000 tickets for the 2006 US Grand Prix to be given to this year's fans, reports the BBC.
Meanwhile, company chairman Edouard Michelin has contacted FIA president Max Mosley to complain about comments he made in the wake of the Indianapolis fiasco.
He acted after a fax Mosley sent to the company was subsequently circulated to the press.
Michelin claims Mosley's comments had a "suspicious and inappropriate tone". "Such disclosure, which contains erroneous allegations, may have damaging consequences on Michelin's reputation," he wrote.
"I hope you will be fair enough to acknowledge that Michelin, with its seven partner teams... did the maximum to preserve a true and safe race by proposing a very serious and pragmatic alternative.
"This is all the opposite of a boycott," he added.
But Mosley has rejected Michelin's comments. "We cannot agree with your claim that Michelin did the maximum to preserve a true and safe race," Mosley has written.
"You failed to bring a back-up tyre to the event and your representatives apparently refused to countenance any solution other than a chicane. Anyone with knowledge of the International Sporting Code or an appreciation of the legal climate in the United States would know that a chicane was never an option."
Mosley also dismissed as “extraordinary” claims by Michelin that loads exerted on tyres at turn 13 were “extreme” and that there was no requirement for them to supply tyres that would not suffer in “very extreme conditions”.
“What is Formula One if not motoring ‘in very extreme conditions’,” added Mosley.
