Hybrid electric vehicles (HEVs) have become increasingly popular due to their high fuel economy performance. HEVs typically fall into three categories according to their powertrain configuration, namely serial, parallel, and power-split hybrid. All these configurations use small internal combustion engines (ICEs), which can suffer from high torque fluctuations detrimental for noise, vibration and harshness performance. This paper introduces a novel architecture of hybrid electric powertrain systems (patent pending) which suppresses torque fluctuations and carries out the functionality of hybrid driving. This new hybrid architecture conceptually lies between a serial and a power-split. The new system uses an ICE and two electric machines, including one with a rotating stator, and has the functionalities of existing hybrid powertrains, including transmission, boost, regenerative braking. The paper presents a model for this new powertrain, and a unique controller implemented in MATLAB Simulink®. A specially designed ruled-based multi-state controller is included in the model to achieve control and enhance fuel economy. Results of drive cycle simulations show the systems performance including torque fluctuation suppression and great fuel economy.