In this paper, a new precision forging technique composite processing of the moving-die forging and divided flow forging process to form the spur gear is introduced. A systematic investigation of the floating-relief method process is performed by using finite element numerical simulation. The stress distributions on the workpieces were obtained. The closer the die teeth corner is, the higher stress value results can be acquired. And the effective stress is concentrated in spur gears forging die cavity corner. It was found that the floating-relief method forging process with upper and lower convex punches control the material flow effectively and the tooth cavity is filled successfully during the performing forging and final forging. The proposed method can serve as preconditions to analyze the abrasion and fatigue of spur gears forging die. The obtained results can offer valuable guidelines for gear precision forging experiments and practical process planning.