In this research report a new VLSI block placement algorithm based on the Fuzzy theory is presented. The algorithm has such a feature that many factors related to the cost and performance of VLSI chips can be simultaneously considered. First, we explain the rules used to estimate the routes of wires. Using these rules the chip size containing the wiring space can be estimated. Then, three membership functions corresponding to the wire length and chip size are defined on the basis of the Fuzzy theory. Next, the Fuzzy inference space is introduced in order to determine the position of the VLSI blocks by using the membership functions, and a block placement algorithm using the Fuzzy inference is proposed. In the algorithm, the set of blocks is partitioned into subsets called piled blocks, the blocks in each subset are piled up from the bottom of the chip, and the piled blocks are arranged from the left side to the right side of the chip. In this placement process, Fuzzy inference is used as a criteria corresponding to the wire length and chip area to choose a candidate of block to be located. Experimental results are shown, and they are far superior to those obtained by other methods published in the literature so far.