An observer-based multirate control system design problem is considered. First, the reduced-order multirate observer design of current type is studied on the basis of the mode-decoupling transformation. It is then shown that the state estimates can be achieved by two low-order multirate observers which possess hierarchical structure. Furthermore, the asymptotic stability of the multirate control system incorporating such reduced-order observers is investigated. Finally, an application to an aircraft longitudinal control problem is given. Copyright (C) 1998 John Wiley & Sons, Ltd.