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Gate sizing and threshold voltage (Vt) assignment are popular techniques for circuit timing and power optimization. Existing methods, by and large, are either sensitivity-driven heuristics or based on discretizing continuous optimization solutions. Sensitivity-driven heuristics are easily trapped in local optima and the discretization may be subject to remarkable errors. In this paper, we propose a systematic combinatorial approach for simultaneous gate sizing and Vt assignment. The core idea of this approach is joint relaxation and restriction, which employs consistency relaxation and coupled bi-directional solution search. The process of joint relaxation and restriction is conducted iteratively to systematically improve solutions. Our algorithm is compared with a state-of-the-art previous work on benchmark circuits. The results from our algorithm can lead to about 22% less power dissipation subject to the same timing constraints.