The cold closed-die forging of spur gears brings the problems of great forming forces , low life of the dies and insufficent corner filling. The two-step forming technology is presented. First, the billet is pre-forged by closed-die forging for getting most of tooth profile. Second, the gear is finish-forging by local loading. The finite element method is used to simulate the cold forging process.The strain distributions, the stress distributions, velocity distributions and load-stroke curve are investigated.. The simulation results show that the technology can guarantee the full filling effect, and decrease the forming force remarkably. The results of simulation and analysis were verified by the physics experiment.