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Joseph Graffagnino, 34, of Brooklyn, and Robert Beddia, 53, suffered severe smoke inhalation and went into cardiac arrest. Authorities said they were found on the 14th floor.

"Our city has worked hard to recover from that awful day in September almost six years ago and today's sad events extend the sacrifice that this fire department has made," Mayor Michael Bloomberg said at a press conference in NY Downtown Hospital, where firefighters gathered by the entrance to the emergency room. "We will honor their memories as we have all of their fallen brothers."

Graffagnino, an eight-year veteran who was detached from Ladder Company 5 to Engine 24 for the night, and Beddia, a 23-year veteran working with Engine 24, were with the fire house that lost 11 firefighters on 9/11. They were the second and third firefighters to die in the city this year.

"It just goes to remind everybody that we have men and women who run into danger when the rest of us are running away from it," Bloomberg said.

About six other firefighters who were suffering from smoke inhalation and other minor injuries were taken to NYU and Bellevue Hospital Center, but were expected to be released immediately, Bloomberg said.

The fire started about 3:40 p.m. in the building at 130 Liberty St. The structure was 41 stories on 9/11; construction workers have been working for months to take it apart, floor by floor.

The abandoned skyscraper has been the subject of long court battles and concerns over toxic contamination. The ongoing discovery of remains from 9/11 victims since it was badly damaged by the trade center's south tower has stalled the building's deconstruction.

About 275 firefighters battled the blaze, which was still .burning last night.

A fire official said the building did not have functioning standpipes, which would have allowed firefighters to tap into a water source faster. Instead, they had to use ropes to pull up the hoses.

The cause and the origin of the fire are unknown.

Construction workers were doing asbestos abatement work in the building, which now reaches some 26 stories, when the fire started.

A spokeswoman for Bovis Lend Lease, the company in charge of the cleaning and dismantling of the building, .declined to comment.

While the fire sparked concerns about poor air quality and a potential building collapse, causing nearby residents to be temporarily evacuated, Bloomberg said there was .nothing to worry about.

"There is no danger whatsoever," he said. "Air quality and the environmental impact, as you might imagine, are top concerns to us and we are monitoring the situation very closely."

More results from environmental tests are expected this morning, he said.

About 50 people milled about on Greenwich Street watching flames shoot out of the top of the building, which is surrounded by scaffolding and covered with a black shroud.

Pieces of fiery debris rained down from the building onto the street; booms sounded periodically as glass shattered.

Scott Goldfarb, 50, of Plattsburgh, was going to take a group tour of the area surrounding Ground Zero, but it was canceled when smoke started billowing from the top of the building.

"All of a sudden, fire started shooting out of the windows about halfway up the building," Goldfarb said.

Jeff Rose, 22, of Croton in Westchester County, said he saw the smoke when he was approaching Manhattan on the Staten Island ferry and ran to see what was happening.

Susana Enriquez and Michael Amon contributed to this story.