This paper describes a new optimization procedure called Diffusion which can be used in global circuit placement for suppressing inter-module and module-to-chip boundary overlaps. A salient feature of the proposed Diffusion procedure is that multiple decisions on the moves of all variables (module positions) are simultaneously made such that a global, analytic objective function is minimized. Various strategies are discussed to speed up the convergence, and to prevent the solution from being stuck at local minima. The Net force model is used with the Diffusion procedure to minimize the inter-module wire length besides reducing the inter-module and module-to-chip overlaps. Various experimental results are given. Further potential applications of the proposed procedure include multilayer placement, and placement in arbitrarily-shaped region.