AbstractThis paper addresses the problem of stabilization of discrete-time systems including a cone-bounded nonlinearity and a saturating actuator. In the sense of Lyapunov stability, we introduce a new candidate Lyapunov function which takes nonlinearity behavior into account. The local stability criterion is formulated as a set of Bilinear Matrix Inequalities (BMI) conditions. We present an optimization problem in order to guarantee the closed-loop stability aiming the largest basin of attraction, which may be nonconvex, and/or, nonconnected. Furthermore, a simple iterative algorithm is proposed in order to solve our BMI problem. Some numerical examples are presented to highlight the relevance of the new Lyapunov function in regard to the classical quadratic function.