Deformation analysis of foundation is an important research field in geotechnical engineering, especially analysis on instantaneous deformation and consolidation deformation of saturated soft clay foundations. In this paper, a computation model of instantaneous deformation and consolidation deformation was built on the basis of Biot Consolidation Theory and consideration of mechanism of instantaneous deformation and consolidation deformation and consideration of interrelation of both deformations. A method was proposed to determine initial pore water pressure in soil. Nonlinearity of soil deformation under drainage conditions was considered by combining Duncan-Zhang model with compaction curve of soil, and failure soil elements were processed by Mohr-Coulomb Failure Criteria. By numerical simulation, a nonlinear axi-symmetric FEM program was complied to solve foundation deformation and applied in calculation of soft ground tank settlement. Results show that the method presented in this paper is efficient and suitable to analyze instantaneous deformation and consolidation deformation.