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This paper studies the problem of robust fault estimation (FE) observer design for discrete-time Takagi-Sugeno (T-S) fuzzy systems via piecewise Lyapunov functions. Both the full-order FE observer (FFEO) and the reduced-order FE observer (RFEO) are presented. The objective of this paper is to establish a novel framework of the FE observer with less conservatism. First, under the multiconstrained design, an FFEO is proposed to achieve FE for discrete-time T-S fuzzy models. Then, using a specific coordinate transformation, an RFEO is constructed, which results in a new fault estimator to realize FE using current output information. Furthermore, by the piecewise Lyapunov function approach, less conservative results on both FFEO and RFEO are derived by introducing slack variables. Simulation results are presented to illustrate the advantages of the theoretic results that are obtained in this paper.