A design strategy for an integrated shaping and stability control algorithm for ITER is described. This stategy exploits the natural multi-variable nature of the system so that all poloidal field coils are used to simultaneously control all regulated plasma shape and position parameters. A nonrigid, flux-conserving, linearized plasma response model is derived using a variational procedure analogous to the ideal MHD Extended Energy Principle. Initial results are presented for the non-rigid plasma response model approach applied to an example DIII-D equilibrium. For this example, the nonrigid model is found to yield a higher passive growth rate than a rigid current-conserving plasma response model. Multivariable robust controller design methods are discussed and shown to be appropriate for the ITER shape control problem.