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A new approach to implement computationally efficient finite impulse response (FIR) digital filters is presented. The filter structure is a cascade of two sections. The first section generates a sparse set of impulse response samples and the other section generates the remaining samples by using interpolation. The method can be used to implement most practical FIR filters with significant savings in the number of arithmetic operations. Typically 1/2 to 1/8 of the number of multipliers and adders of conventional FIR filters are required in the implementation. The saving is achieved both in the linear phase and the non-linear phase cases. In addition, the new implementation gives smaller coefficient sensitivities and better roundoff noise properties than conventional implementations.