A method extends a clock-gating technique to provide a sleep signal for controlling switch circuits that reduce active leakage power. Using this extension of the clock-gating technique, fine-grained power-gating is achieved. The method automatically identifies, at an RTL or a gate level, the logic circuits that can be power-gated. The method of the present invention derives a sleep signal for fine-grained power-gating that may be applicable to both time-critical and non-time-critical designs.