In this paper, an effective algorithm is presented for multilevel circuit clustering for delay minimization, and is applicable to hierarchical field programmable gate arrays. With a novel graph contraction technique, which allows some crucial delay information of a lower-level clustering to be maintained in the contracted graph, our algorithm recursively divides the lower-level clustering into the next higher-level one in a way that each recursive clustering step is accomplished by applying a modified single-level circuit clustering algorithm based on . We test our algorithm on the two-level clustering problem and compare it with the latest algorithm in . Experimental results show that our algorithm achieves, on average, 12% more delay reduction when compared to the best results (from TLC with full node-duplication) in . In fact, our algorithm is the first one for the general multilevel circuit clustering problem with more than two levels.