In this paper, we study the problem of retiming of sequential circuits with both interconnect and gate delay. Most retiming algorithms have assumed ideal conditions for the non-logical portions of the data paths, which are not sufficiently accurate to be used in high performance circuits today. In our modeling, we assume that the delay of a wire is directly proportional to its length. This assumption is reasonable since the quadratic component of a wire delay is significantly smaller than its linear component when the more accurate Elmore delay model is used. A simple experiment is conducted to illustrate the validity of this assumption. We present two approaches to solve this problem, both of which have polynomial time complexity. The first one can compute the optimal clock period while the second one is an improvement over the first one in terms of practical applicability. The second approach gives solutions very close to the optimal (0.13% more than the optimal on average) but in a much shorter runtime. A circuit with more than 22 K gates and 32 K wires can be optimally retimed in 83.56 seconds by a PC with an l.8 GHz Intel Xeon processor.