When dealing with large-scale systems, manual selection of a subset of components (sensors/actuators), or equivalently identification of a favourable structure for the controller, that guarantees a certain closedloop performance, is not very feasible. This paper is dedicated to the problem of concurrent optimal selection of actuators/sensors which can equivalently be considered as the structure identification for the controller. In the context of a multi-channel ℋ 2 dynamic output feedback controller synthesis, we formulate and analyse a framework in which we incorporate two extra terms for penalising the number of actuators and sensors into the variational formulations of controller synthesis problems in order to induce a favourable controller structure. We then develop an explicit scheme as well as an iterative process for the purpose of dealing with the multiobjective problem of controller structure and control law co-design. It is also stressed that the immediate application of the proposed approach lies within the fault accommodation stage of a fault tolerant control scheme. By two numerical examples, we demonstrate the remarkable performance of the proposed approach.keywords Simultaneous actuator/sensor selection, regularisation, row/columnwise sparsification, linear matrix inequality, dynamic output feedback.