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This paper proposes a new static var compensator (SVC) robust additional damping controller (RADC) to improve the damping of power system inter-area oscillation with considering time delay of wide-area signals. Firstly, since the impact of time delay introduced by remote signal's transmission and processing in wide-area measurement systems (WAMS) has to be considered, the design of SVC additional damping controller is formulated as the time-delay output feedback control problem. Then based on the direct feedback linearization (DFL) theory, robust control theories and state observer, the parameters of controller are designed by employed the free-weighting matrices method and pole placement method. Finally, taking the four-machine two-area power system as an example, the simulation results demonstrate the damping controller not only inhibits inter-area low-frequency oscillation evidently, but also is robust to various operating conditions and time delay.