The objective of this paper is to propose a reduced-order observer for a class of Lipschitz nonlinear discrete-time systems. The conditions that guarantee the existence of this observer are presented in the form of linear matrix inequalities (LMIs). To handle the Lipschitz nonlinearities, the Lipschitz condition and the Young′s relation are adequately operated to add more degrees of freedom to the proposed LMI. Necessary and sufficient conditions for the existence of the unbiased reduced-order observer are given. An extension to
H_\infty performance analysis is considered in order to deal with
H_\infty asymptotic stability of the estimation error in the presence of disturbances that affect the state of the system. To highlight the effectiveness of the proposed design methodology, three numerical examples are considered. Then, high performances are shown through real time implementation using the ARDUINO MEGA 2560 device.