This paper presents an output-feedback controller design for Lur'e-type systems with set-valued nonlinearities in the feedback loop based on a generalization of a Popov-like criterion. Hereto, we introduce the concept of absolute input-to-state stability (ISS) that generalizes the well-known absolute stability property. The latter concept is used to design a state-feedback controller that renders the closed-loop system absolutely ISS and, therewith, robust to uncertainties in the nonlinearities and disturbances, such as measurement noise. Furthermore, an output-feedback controller design is constructed by exploiting the ISS property, where a model-based observer is used to estimate the system state. The control strategy is applied to a mech...