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In this paper, a new input variable partitioning method for functional decomposition is presented. Efficiency of currently used decomposition algorithms is dependent on the size of decomposed functions. One of the crucial aspects of functional decomposition is the input variable partitioning. This synthesis method has important application in many fields of modern engineering and science. However the practical usefulness of decomposition-based methods for very complex systems is restricted by computational complexity and memory requirements of the existing algorithms. The paper presents many examples confirming that the proposed method leads to reduction in the computation time.