A new coordination strategy for hierarchical optimizing control is presented, Unlike the price coordination method this approach is not a primal and dual method and its convergence behaviour does not depend on the feature of the saddle point of the problem lagrangian. Compared with the price coordination method, this approach has two advantages. Firstly, its applicability conditions are easier to satisfy and secondly, its convergence behaviour is more desirable in terms of convergence rate and insensitivity of the hessian structure of the problem. A variable augmentation technique is employed to increase the flexibility of the iterative gain selection and to improve further the convergence behaviour of the method. Optimality and convergence analysis are provided for each different version of the algorithm presented. A comparative study between different versions of the algorithm presented and a single iterative integrated system optimization and parameter estimation (ISOPE) method with global feedback is also provided using computer simulation.