The disturbance rejection with simultaneous input-output linearization and decoupling problem of nonsquare nonlinear systems via restricted state feedback is investigated in this paper. The problem is treated on the basis of an algebraic approach whose main feature is that it reduces the determination of the admissible state feedback control laws to the solution of an algebraic and a first order partial differential systems of equations. Verifiable necessary and sufficient conditions of algebraic nature based on these systems of equations are established for the solvability of the aforementioned problem. Moreover, an explicit expression for a special admissible restricted state feedback controller is analytically derived. [S0022-0434(00)02101-8]