A new cold precision forging technique is proposed to form a spur gear from a hollow billet, that is blocking the divided flow region and then final forging by the relief hole. 3D2FEM simulation of the whole process of a pure alu-minium spur gear is performed using DEFORM-3DTM. The load-stroke curve, effective stress distribution, effective strain distribution, velocity distribution, and so on, are achieved. These results are compared with those achieved using the conventional closed die forging in the same conditions. The results show that this new technique has many advantages over the conventional one. The deformation load is reduced by near 30% and the filling ability of the tooth profile is also improved. Precision forging experiments of spur gears with the new process were performed using material Pb. The experimental results show a good agreement with the numerical results.