A method is described for controlling the injection of fuel in a direct injected, multi-cylinder internal combustion engine, to smooth transients in engine output torque associated with a deceleration fuel cut-off mode of engine operation. This is accomplished by detecting engine operating conditions that call for the initiation of a transition associated with the decelaration fuel cut-off engine operating mode. In response to the detected operating conditions, a transitional period is initiated, during which the injection of fuel into a varying portion of engine cylinders is then interrupted. When the transitional period is associated with entry into the deceleration fuel cut-off mode, the injection of fuel to a progressively increasing number of cylinders is interrupted. When the transitional period is associated with recovery from the deceleration fuel cut-off mode, the injection of fuel to a progressively decreasing number of engine cylinders is interrupted. The rate of entry into the fuel cut-off mode is preferably fixed, while the rate of receovery is determined in accordance with the position of an engine control element for adjusting the amount of torque developed at the engine output. Alternatively, the rate of recovery may be determined by the maximum rate of positional change of the engine control element.