The problem considered may be formulated in general terms as follows: given a linear multivariable system SIGMA characterized by a square (m multiplied by m) strictly proper transfer function matrix T//0(s), a precompensator T//c(s) and an output feedback constant gain matrix are to be determined such that the closed loop transfer function matrix H(s) of a given configuration is diagonal, nonsingular and its poles are placed in desired positions in the left hand s-plane.