Summary: This paper proposes a new output feedback model reference adaptive control (MRAC) method for discrete-time linear time-invariant systems with arbitrary relative degrees. The proposed method does not require any prior knowledge of the high-frequency gain represented by \(k_p\), thereby completely eliminating the common design condition in the traditional discrete-time MRAC framework: the sign of \(k_p\) is known, as well as an upper bound on \(|k_p|\). Specifically, an output feedback adaptive control law is developed, which incorporates a time-varying gain function to effectively address the singularity issue. The developed adaptive control law leads to the derivation of a linear estimation error equation for the closed-loop system. Consequently, a gradient algorithm based parameter update law is directly formulated by utilizing the estimation error and some other available signals without requiring any prior knowledge of \(k_p\). In comparison to the traditional MRAC and Nussbaum function-based methods, it does not necessitate any additional design conditions or involve any transient performance issues, while still ensuring closed-loop stability and asymptotic output tracking for any given bounded reference signal. The simulation study showcases the design procedure and evaluates the efficacy of the proposed control method.