In the development of the activity started on lattice analogues of W a
lgebras, we define the notion of a lattice W(infinity) algebra, associ
ated with a lattice integrable system with an infinite set of fields.
Various kinds of reduction to lattice W(N) algebras, related to discre
te N-KdV hierarchies are described. We also discuss the connection of
our results with those obtained in the papers of Xiong [Phys. Lett. B
279 (1992) 347] and Bonora [Multimatrix models without continuous limi
t, preprint SISSA-ISAS 211/92/EP (1992)].