SUMMARYIn diffusion modelling by means of the transmission-line matrix (TLM) method, a nodal arrangement of using lossless transmission-line segments and series resistors is almost exclusively adopted and is currently considered as a standard approach. In this paper, the use of shunt resistors instead of series resistors is shown to represent an equally valid configuration. As a starting point, we have derived the telegrapher's equation in its most general form for TLM modelling of diffusion processes. A general algorithm based on the shunt-resistor TLM model for implementing a numerical solution of the diffusion equation in multiple dimensions is given. Fundamental analysis and calculated examples confirm that the alternative shuntresistor configuration does not exhibit the unwanted absorption effects suggested by a recent paper (Internat. J. Numerical Model.: Electronic Networks, Devices and Fields 2002; 15:261).