The static output feedback control problem for discrete linear, singularly perturbed, stochastic systems is studied. A recursive algorithm is presented to solve the corresponding coupled non-linear algebraic equations. The algorithm removes the ill-conditioning by decomposing the higher order equations into lower order equations and develops a technique which enables us to obtain an arbitrary accuracy, that is,0(ϵj) (j= 1, 2, 3, …)a approximation for this problem. A numerical example is presented to support the theoretical results.