A novel perfusion system was developed for high density culture of animal cells. The system consists of an airlift bioreactor, a setting tank and a flat settler. Both the settling tank and flat settler have two connecting pipes for transporting the cells from and back to the reactor, respectively. Thus, the cell flow in the settlers can be controlled in uni-direction, avoiding the countercurrent flow of the cells. During perfusion cultures, the cells firstly settled in the settling tank, then, unsettled cells in the tank were transferred to the flat settler for re-settling. With the application of the system to hybridoma cell cultures, it was found that the maximum viable cell density, monoclonal antibody concentration and average productivity were 1.31 x 107 cells ml-1, 400 mg l-1 and 461 mg l-1 d-1, respectively, which were much higher than those of a batch culture. Both theoretical analysis and experimental results showed a much higher separation efficiency in such a two-step sedimentation system than that in a conventional one-step sedimentation system. In addition, the volumetric ratio of the sedimentation devices to the culture volume in our developed system is much lower, which may be potentially useful on an industrial-scale.