This study was carried out to propose a new-concept internal combustion engine which has great potential advantages to the conventional engines. Proposed new-concept engine is a kind of rotary engine. A rotor is rotating concentrically in a cylinder which is divided into two partitioning valves, and it makes four compartments in the cylinder. The volumes of each of four compartments are changing continuously with the rotor movement and performs the functions of intake, compression. expansion and exhaust simultaneously. Expected thermal efficiency for the real cycle is 26 percent at conditions of 1,000 rpm and compression ratio of 8.0, which is 3 to 4 percent higher than that of the conventional engines such as the piston engine, gas turbine and Wankel rotary engine. A simulation procedure proved that the new concept engine is functional, and has many potential advantages compared to the existing conventional engines.