A new method for order reduction of singularly perturbed discrete systems is derived. The discrete system is reduced to its dominant and parasitic parts. This method can exactly exhibit the responses of the original system. For control law design, the linear model-following control (LMFC) method is applied. The order of the model is chosen the same as that of the dominant part of the plant, i.e. we apply to the plant with and without parasitics the same LMFC law. The conditions for reduced-order LMFC systems are derived and some simulation results are illustrated