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Power-level regulation is a significant technique for guaranteeing both operation stability and efficiency of nuclear reactors. With the wide application of the digital instrument and control platforms, the implementation of modern state-feedback power control strategies, which have the ability of strengthening both the operation stability and efficiency for nuclear reactors, becomes much easier than before. Due to the advanced property of state-feedback power-level control and nonlinearity of reactor dynamics, it is so meaningful to develop nonlinear state-feedback power-level control laws. In this paper, a novel nonlinear state-feedback dissipation power-level control strategy is presented, which guarantees both the asymptotic closed-loop stability and convergent state-observation. Numerical simulation results show the feasibility and relationship between the observer-gain and control performance, and theoretic analysis corresponding to the simulation results is also given.