By Josh Dawsey and Matt Jarzemsky 

An emergency manager tapped by New Jersey Gov. Chris Christie to study Atlantic City's deteriorating finances is preparing to interview restructuring lawyers, marking the latest step by authorities to tackle the city's woes.

Hiring lawyers is likely to be seen as one of the more definitive steps the emergency managers have taken since they were tapped by Mr. Christie in January. Restructuring lawyers often seek to strike deals with the city's creditors to avoid bankruptcy or guide cities through bankruptcy proceedings.

Atlantic City faces a budget gap of more than $100 million this year, and casino revenues continue to decline. Four properties have closed since the beginning of 2014.

The emergency managers, Kevin Lavin and Kevyn Orr, who handled Detroit's bankruptcy, have already proposed some layoffs in the city's workforce and other cuts. The emergency managers are expected to issue another report later this year.

Kevin Roberts, a spokesman for Mr. Christie, confirmed the discussions. "It should come as no surprise that experienced counsel may be engaged as part of the ongoing reform efforts under way in Atlantic City," Mr. Roberts said.

Chris Filiciello, a representative for Atlantic City Mayor Don Guardian, said the city was aware of "discussions" but declined to comment further.

Mr. Lavin has requested pitches from lawyers specializing in bankruptcy and out-of-court debt reorganizations to explore legal avenues related to potential deals the city and state could cut with unions, casino operators and other stakeholders in Atlantic City, according to the people familiar with the matter.

Mr. Lavin sent requests to a broad range of law firms, but the invitation to pitch was written to favor firms that have represented governments in bankruptcies under Chapter 9 of the U.S. bankruptcy code, one of the people familiar with the process said.

The interview process follows New Jersey's move to tap Ernst & Young to analyze Atlantic City's financial situation. Mr. Christie's brother, Todd Christie, works for Ernst & Young. State and firm officials have said the hiring was based on the Ernst & Young's expertise and work in Detroit's bankruptcy.

Mr. Lavin couldn't be reached for comment. Mr. Orr, who supervised Detroit's bankruptcy and has worked on Atlantic City's finances, didn't return messages seeking comment.