A method for forming a slot contact structure for transistor performance enhancement. A contact opening is formed to expose a contact region, and a slot contact is disposed within the contact opening in order to induce a stress on an adjacent channel region. In an embodiment, a stress inducing barrier plug is disposed within a portion of the contact opening and the remainder of the contact opening is filled with a lower resistivity contact metal. By selecting the proper materials and deposition parameters, the slot contact can be tuned to induce a tensile or compressive stress on the adjacent channel region, thus being applicable for both p-type and n-type devices.