Abstract: This disclosure provides a system and method for determining cylinder deactivation in a vehicle engine to optimize fuel consumption while providing the desired or demanded power. In one aspect, data indicative of terrain variation is utilized in determining a vehicle target operating state. An optimal active cylinder distribution and corresponding fueling is determined from a recommendation from a supervisory agent monitoring the operating state of the vehicle of a subset of the total number of cylinders, and a determination as to which number of cylinders provides the optimal fuel consumption. Once the optimal cylinder number is determined, a transmission gear shift recommendation is provided in view of the determined active cylinder distribution and target operating state.