Abstract: In order to overcome the shortcoming of the G-P algorithm and its improved form, a new approved algorithm has been proposed. When the new algorithm is used, the determination of the no-scale interval is simplified and the judgement for the saturation of the correlation dimension is realized objectively. It is very efficient for the identification of chaotic signal. Based on the new G-P algorithm, further discussion and analysis about the new G-P algorithm is carried out. The simulation results show that the applicable range of the new algorithm is very wide.