This study considers a functionally graded (FG) elastic layer resting on homogeneous elastic substrate under axisymmetric static loading. The shear modulus of the FG layer is assumed to vary in an exponential form through the thickness. In solution, the FG layer is approximated into a multilayered medium consisting of thin homogeneous sublayers. Stiffness matrices for a typical homogeneous isotropic elastic layer and a half-space are first obtained by solving the axisymmetric elasticity equations with the aid of Hankel's transform. Global stiffness matrix is, then, assembled by considering the continuity conditions at the interfaces. Numerical results for the displacements and the stresses are obtained and compared with those of the classical elasticity and the finite element solutions. According to the results of the study, the approach employed here is accurate and efficient for elasto-static problems of FGMs.