A new algorithm for string edit distance computation is given. The alg
orithm assumes that one of the two strings to be compared is a diction
ary entry that is known a priori. This dictionary word is converted in
an off-line phase into a deterministic finite state automaton. Given
an input string and the automaton derived from the dictionary word, th
e computation of the edit distance between the two strings corresponds
to a traversal of the states of the automaton. This procedure needs t
ime which is only linear in the length of the input string. It is inde
pendent of the length of the dictionary word. Given not only one but N
different dictionary words, their corresponding automata can be combi
ned into a single deterministic finite state automaton. Thus the compu
tation of the edit distance between the input word and each dictionary
entry, and the determination of the nearest neighbor in the dictionar
y need time that is only linear in the length of the input string. How
ever, the number os states of the automaton is exponential.