We report on the design of a power extractor using a rectangular dielectric loaded (DL) waveguide. The use of a rectangular rather than a circular DL waveguide can potentially lead to higher output power, since a flat drive beam can then be used to mitigate space charge effects. This power extractor based on the LSM 11 mode is predicted to be able to generate 171 MW of power with a 100 nC/bunch drive train of electron bunches separated by 0.769 ns. An output coupler is also designed which is able to extract the generated power to standard waveguides with a 94% coupling efficiency. The propagation of an intense electron beam through a long rectangular DL waveguide is investigated. Results show that, by using a periodic magnetic focusing channel surrounding the waveguide, a 20 MeV, 40 nC beam can propagate up to 129 cm without significant particle losses.