Variable Stiffness Actuators (VSA) have been proposed as an alternative actuation system for manipulators that are utilized for safe physical Human-Robot Interaction (pHRI). However, in the incidents of collision, the need of a fast response in stiffness tuning would rise to ensure safety. In this paper, we present a novel Discrete Variable Stiffness Actuator (DVSA) to be used in a compliant robotic manipulator for safe physical Human-Robot Interaction (pHRI). The novelty of this actuator lies in its design topology which allows the stiffness level to change swiftly among predefined levels without the need of complex stiffness tuning mechanism. Through this topology, three springs in parallel are connected serially between the motor and the link via gear train. The stiffness of the actuator is altered by adding/subtracting the number of involved springs, which can be realized through engagement/disengagement electromagnetic clutches on two of these spring’s shafts. The working principle, and the detailed design of the actuator are illustrated. Moreover, the stiffness model and the dynamic model are presented and discussed thoroughly. In order to validate these mathematical models and achieve optimal control, system identification for the dynamic parameters was performed experimentally on the physical model. Furthermore, the system’s ability of tracking desired trajectory was achieved through the implementation of different control techniques including PID (Proportional-Integral-Derivative), LQR (Linear Quadratic Regulator) and pole placement. The results show the high potential of utilizing the actuator in compliant manipulators. Moreover, DVSA is also characterized for safety in pHRI through Head-Injury Criterion (HIC). Finally, an application of DVSA in human augmentation task (Weight Bearing Task) is presented.