Abstract: In this study, we propose a computer optimization algorithm for estimating effective diffusion coefficients of drug delivery from a cylinder to an external cylindrical finite volume. We first write the diffusion equation in the polar-coordinate form and then a finite difference scheme for the diffusion equation is developed for solving the equation. The diffusion coefficient extraction is formulated as a least squares problem. To solve the lest-squares problem defining the unknown diffusivity, a computer algorithm of Gauss-Newton type is proposed. Numerical results are presented to validate the numerical methods proposed.