1-open features folder from C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\12\TEMPLATE\FEATURES\Publishing

2-open PublishingSiteSettings.xml file

3-find this tag that hide “save site as a template” then comment it.

<!–<HideCustomAction
Id=”HideSaveAsTemplate”
HideActionId=”SaveAsTemplate”
GroupId=”Customization”
Location=”Microsoft.SharePoint.SiteSettings” />–>

4-Now we will add this tag ( not required otherwise will appear double)

<CustomAction
Id=”SaveAsTemplate”
GroupId=”Customization”
Location=”Microsoft.SharePoint.SiteSettings”
Rights=”AddAndCustomizePages,BrowseDirectories,ManagePermissions,ManageSubwebs,ManageWeb,UseRemoteAPIs,ViewFormPages”
Sequence=”60″ Title=”$Resources:SiteSettings_SaveAsTemplate_Title;”>
<UrlAction Url=”_layouts/savetmpl.aspx” />
</CustomAction>

5-iisreset

6-open site settings page and you will see the link

image