A method of regulating a torque output of each of an internal combustion engine (ICE) and an electric machine (EM) in a hybrid powertrain system includes determining a desired axle torque of the hybrid powertrain system and arbitrating the desired axle torque and a first plurality of torque requests in an engine control module (ECM) of the hybrid powertrain system to provide an arbitrated axle torque request. The method further includes arbitrating a torque request, which is based on the arbitrated axle torque request, and a second plurality of torque requests in a hybrid control module (HCM) to provide a final torque request, and generating ICE control signals and EM control signals based on the final torque request.