Inutiae extraction on binary fingerprint images is studied deeply in this article. For used minutiae extraction algorithm, there exist some false minutiaes and omitted minutiaes. A new improved minutiae extraction algorithm is proposed to solve the problem. The algorithm divides image segment, extracts minutiaes with direction and merge image segment. Through lots of experiments, the algorithm has been proved to a better minutiae extraction algorithm which can significantly reduce false minutiaes and omitted minutiaes in the extracting process.