Let r be a positive integer, h(X) ∈ F q 2 [X], and µ q+1 be the subgroup of order q + 1 of F * q 2 . It is well known that X r h(X q−1 ) permutes F q 2 if and only if gcd(r, q − 1) = 1 and X r h(X) q−1 permutes µ q+1 . There are many ad hoc constructions of permutation polynomials of F q 2 of this type such that h(X) q−1 induces monomial functions on the cosets of a subgroup of µ q+1 . We give a general construction that can generate, through an algorithm, all permutation polynomials of F q 2 with this property, including many which are not known previously. The construction is illustrated explicitly for permutation binomials and trinomials.