This paper proposes a novel dual-permanent-magnet-excited (DPME) machine. It employs two sets of permanent magnets (PMs). One is on the rotor, the other is on the stator with PM arrays. When compared with the existing DPME machines, not all of the PMs are located in the slots formed by the iron teeth. Specifically, the radially magnetized PMs in the arrays are located under the short iron teeth, while the tangentially magnetized PMs are located in the slots formed by the long stator iron teeth and the radially magnetized PMs. Each long stator iron tooth is sandwiched by two tangentially magnetized PMs with opposite directions, thus resulting in the flux strengthening effect. The simulation analysis indicates that the proposed machine can offer large back EMF with low THD and large torque density with low torque ripple when compared with Machine I from a literature. Meanwhile, by comparison, the proposed machine has great potential in improving the power factor and efficiency.