In this study, a novel nonlinear adaptive filter algorithm is proposed guaranteeing the asymptotic stability in the sense of Lyapunov. The tracking capability of the proposed filter is tested by using a created artificial signal having a finite number of discontinuities. The proposed filter shows high performance both in Matlab environment and its FPGA realization. As a result, realization of the proposed filter with FPGA is confirmed. © 2012 IEEE.