A modeling of two-phase system is presented for investigation of the cell motion and deformation in the microchannel subject to the mechanical and electrical coupled forces. In order to evaluate the mechanical force developed by cell membrane, it is treated as an incompressible and elastic shell with uniform thickness capable of shearing and bending deformation. Due to the irregular and complex cell configuration after deformation, the Maxwell stress tensor (MST) method is successfully employed to analyze the dielectrophoretic force. The modified particle binary level set (MPBLS) method is presented to accurately track the moving interface between the two phases, which is vital for a modeling of two-phase system. Afterwards the modified SIMPLER coupled with SIMPLEC is used to numerically solve the incompressible Navier-Stokes equations governing the entire flow field. On basis of the series of methods, the motion and deformation of red blood cell (RBC) in the microchannel under the mechanical and electrical forces are simulated to demonstrate the deformation process and the moving trajectory of RBC. The present study is not only of great value for deeper understanding of some diseases caused by cell abnormality, but also of practical significance for cell manipulation and separation.