The authors present an algorithm for obtaining stable reduced order models using the combined advantages of the dominant pole retention method and the modified Cauer continued fraction. The reduction procedure is simple and computer oriented. It is shown that the method has several advantages, e.g. the reduced order models retain the steady-state value and stability of the original system. The proposed method has also been extended for the order reduction of linear multivariable systems. Three numerical examples are solved to illustrate the superiority of the method over some existing ones including one example of multivariable system.