IN THIS STUDY, THE PLANE RECEDING CONTACT PROBLEM for a functionally graded (FG) layer resting on two quarter-planes is considered by using the theory of linear elasticity. The layer is indented by a rigid cylindrical punch that applies a concentrated force in the normal direction. While the Poisson's ratio is kept constant, the shear modulus is assumed to vary exponentially through-the-thickness of the layer. It is assumed that the contact at the layer-punch interface and the layer-substrate interface is frictionless, and only the normal tractions can be transmitted along the contact regions. Applying the Fourier integral transform, the plane elasticity equations are converted to a system of two singular integral equations, in which the contact stresses and the contact widths are unknowns. The singular integral equations are solved numerically by Gauss-Jacobi integration formula. Effects of the material inhomogeneity, the distance between quarter-planes and the punch radius on the contact stresses, the contact widths, and the stress intensity factors at the sharp edges are shown. Although the theoretical analysis is formulated with respect to elastic quarter planes, the numerical studies are carried out only for rigid ones.