An iterative procedure for 3D blade design is presented. The three-dimensional blade shape is modified using a physical algorithm, based on the transpiration model. The transpiration flux is computed by means of a modified Euler solver, in which the target pressure distribution is imposed along the blade surfaces. The method is based on a high. resolution three-dimensional Euler solver. An upwind biased evaluation of the advective fluxes allows for a very low numerical entropy generation, and sharp shock capturing. Non reflecting boundary conditions are imposed along the inlet/outlet boundaries. The capabilities of the method are illustrated by redesigning a shock free transonic compressor rotor blade.