The paper proposes a stabilizing dynamic output switching control policy, based on variable structure control, which extends recently published results to a wider class of systems, and further improves the controller performances in terms of transient duration. It is worthy of note that the proposed observer based variable structure controller, exploiting the features of the coupled switching control, is based on less restrictive conditions with respect to those traditionally assumed. The proposed controller has been tested by simulation on IFAC benchmark problem no. #90-09.