This paper presents a method of designing the Controller for large scale discrete time systems. The Controller is designed via a reduced order model for a given high order system. In the proposed reduction method, the numerator coefficients are obtained using Interpolation criteria while the denominator polynomial is obtained by using, one of the stability preserving methods, the Dominant pole method. An optimised reduced order model is derived with minimum ISE. It has been shown that the control designed for the reduced order model, when applied to the higher order system, improves the performance of the controlled system. The method has been tested by considering typical numerical examples, available in the literature, and the results are found to be satisfactory.