An extreme ultraviolet lithography (EUVL) system is disclosed. The system includes an extreme ultraviolet (EUV) mask with three states having respective reflection coefficient is r1, r2 and r3, wherein r3 is a pre-specified value that is a function of r1 and r2. The system also includes a nearly on-axis illumination (ONI) with partial coherence a less than 0.3 to expose the EUV mask to produce diffracted light and non-diffracted light. The system further includes a projection optics box (PUB) to remove a portion of the non-diffracted light and to collect and direct the diffracted light and the remaining non-diffracted light to expose a target.