An effective placement of macro blocks having arbitrary width and height is very important in reducing the chip area and the signal delay. In this paper, we proposed a method of macro block placement to obtain the globally optimal placement using simulated annealing, and an efficient algorithm for eliminating the overlaps between the rectangular macro blocks which may remain even after the simulated annealing process is terminated. Each macro block was enlarged to take into account minimal routing area, and these macro blocks were compacted as much as possible during the placement. This procedure was implemented in C language running on MV10000/UNIX computer system, and good placements were obtained by applying this procedure to two circuits which were consisted of 50 and 160 macro blocks respectively. Several parameters giving great effects to final placements were investigated.