This work proposes a method for hardware reduction in circuits of Mealy finite state machines (FSMs). The circuits are implemented as networks of interconnected look-up table (LUT) elements. The FSMs with twofold state assignment and encoding of output collections are discussed. The method is based on using two LUT-based cores to implement systems of partial Boolean functions. One of the cores uses only maximum binary codes, while the second core is based on the use of extended state codes. The hardware reduction is based on diminishing the number of transformed maximum binary codes. This leads to FPGA-based FSM circuits with three levels of logic blocks. Each logic block has a single level of LUTs. As a result, partial functions are represented by single-LUT circuits. The article shows a step-by-step procedure for the transition from the initial form of the FSM representation to its logical circuit (a network of programmable look-up table elements, flip-flops, and interconnects). The results of experiments conducted with standard benchmarks show that the proposed approach produces LUT-based FSM circuits with significantly better area characteristics than for circuits produced by such methods as Auto and One-Hot of Vivado, JEDI, and twofold state assignment. Compared to these methods, the number of LUTs is reduced from 9.44% to 69.98%. Additionally, the proposed method leads to the following phenomenon: the maximum operating frequency is slightly improved as compared with FSM circuits based on twofold state assignment (up to 0.6%). The negative effect of these improvements is an increase in power consumption. However, it is extremely insignificant (up to 1.56%). As the values of the FSM’s main characteristics grow, there is an increase in the gain from the application of the proposed method. The conditions for applying the proposed method are determined. A generalized architecture consisting of three blocks of partial functions and a method for synthesizing an FSM with this architecture are proposed. A method for selecting one of the seven architectures generated by the generalized architecture is proposed.