We present an e cient algorithm to compute an optimal rectilinear Steiner tree for extremal point sets. A point set is extremal if every point in it lies on the boundary of a rectilinear convex hull of the point set. Our algorithm can be used to construct minimum-length connection for multi-terminal nets in homotopic routing in VLSI layout design. The previous best algorithms run in O(k 4 n) time and O(n 3 ) time, where n is the size of the point s e t a n d k is the size of its rectilinear convex hull. Our algorithm runs in O(k 2 n) time which represents a signi cant improvement.