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In this paper, a new method to design a diffusion layer based on maximum distance separable codes for a Substitution permutation Networks (SPN)-type block cipher is proposed. The proposed diffusion layer has been designed employing the properties of maximum-length group Cellular Automata (CA). Diffusion layer of lengths 16-bit, 32-bit, 64-bit and 128-bit have been implemented using CA and combinational logic gates. Synthesis results of proposed diffusion layer on a FPGA platform are given.