Abstract: In this paper, the control of systems with time delay is discussed based on input/output methods. A new predictive control structure is studied in the frequency domain. The main feature of the new scheme is that the disturbance is decoupled from the setpoint response and thus can be adjusted separately. Hence, the resulted controller improves performance of the disturbance rejection. An optimal performance index is defined by desired closed loop transfer function and systematic design procedure is developed to derive the controller analytically. Examples are given to illustrate the method.