Compared to some of the alternative fuel candidates such as methane, methanol and Fischer-Tropsch fuels, dimethyl ether (DME) seems to be a superior candidate for high-quality diesel fuel in near future. The direct synthesis of DME from syngas would be more economical and beneficial in comparison with the indirect process via methanol synthesis. Multifunctional auto-thermal reactors are novel concepts in process intensification. A promising field of applications for these concepts could be the coupling of endothermic and exothermic reactions in heat exchanger reactors. Consequently, in this study, a double integrated reactor for DME synthesis (by direct synthesis from syngas) and hydrogen production (by the cyclohexane dehydrogenation) is modelled based on the heat exchanger reactors concept and a steady-state heterogeneous one-dimensional mathematical model is developed. The corresponding results are compared with the available data for a pipe-shell fixed bed reactor for direct DME synthesis which is operating at the same feed conditions. In this novel configuration, DME production increases about 600 Ton/year. Also, the effects of some operational parameters such as feed flow rates and the inlet temperatures of exothermic and endothermic sections on reactor behaviour are investigated. The performance of the reactor needs to be proven experimentally and tested over a range of parameters under practical operating conditions. (C) 2010 Elsevier Ltd. All rights reserved.