Satellite design process is an interdisciplinary subject in which the need for collaboration among various science and engineering disciplines is evident. Meanwhile, finding an optimal process for conceptual design of a satellite, which can optimize time and cost, is still an important issue. In this paper, based on system engineering approach, an optimal design process is proposed for LEO satellite constellations. In the proposed method, design process, design sequences, and data flow are established. In this regard, the conceptual design process is divided into two levels of mission (or constellation) and system (or satellite) as well as 15 main activities based on the mission profile, previous experiences of the authors, and existing literature. Then, the relationships between these activities have been determined by considering the importance of relationships according to their priority. Finally, these relations are optimized based on design structure matrix (DSM). By utilizing this approach, system design process of a telecommunication satellite constellation in LEO is formulated in conceptual design phase. Performance and capability of the proposed approach in optimal design process of the satellite constellation are investigated by comparing the outcome with existing results in the literature.