The current computation models for gear contact analysis and wear prediction are mostly based on finite element analysis which consumes much computation time and effort. In this work, we adopt an alternative approach for gear contact analysis using linear complementarity. This approach was successfully applied to a pair of rigid spur gears and a planetary gear train (gears are considered as rigid bodies) in our previous work. In this paper, we extend our linear complementarity model to consider local deformation caused due to contact between gear teeth in mesh. Thus obtained linear complementarity model is applied to a pair of spur gears and a planetary gear train. A linear complementarity solver computes the contact forces between meshing teeth of gears. From the contact forces, sliding wear in gear teeth is predicted. Archard’s wear model is used for the wear prediction. Using this model, the contact forces are uniquely determined for the examples considered. The results of linear complementarity and finite element model for a pair of spur gears are compared. The linear complementarity model consumes much less computation time than the finite element model.