In　this　Letter,　we　propose　a　new　algorithm　for　optimal　shape　control　in　fluid　flow　based　on　the　variational　level　set　method.　By　this　algorithm,　a　relatively　smooth　evolution　can　be　maintained　without　re-initialization.　Finally,　the　promising　features　of　the　proposed　algorithm　are　illustrated　by　two　benchmark　numerical　examples.　(c)　2007　Elsevier　B.V.　All　rights　reserved.