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IP address lookup at the router is a complex problem. This has been primarily due to the increasing table sizes, growth in traffic rate and high link capacities. We propose an algorithm for fast routing lookup with reduced memory utilization and access time. This approach shows significant performance improvement in the average case and optimizes the overall time taken for packet routing. Since storage requirement, processing time and number of lookups performed are reduced, power consumption by the router is also reduced. Our simulation result indicates that the proposed technique works approximately 4.11 times better than the standard level compressed trie (LC-trie) approach (see Nilsson, S. and Karlsson, G., Proc. IEEE Broadband Commun. 98, p.9-18, 1998) in the average case.