With the expansion and enhancement of the power transmission network, short-circuit current (SCC) has become a major concern in grid operations. While transmission switching is one effective solution to reduce the SCC without investing in additional equipment, switching lines could threaten system N-1 security. To find an efficient, and secure, yet economic switching solution, this paper proposes an optimal transmission switching model with SCC limitation and N-1 reliability. As the relationship between SCC and integer variables associated with the line states is coupled, nonlinear and difficult to explicitly express, an effective linearization method is proposed. Theoretical analysis of the linearization error is performed using an illustrative example. Case studies have shown that the linearization error is generally small and decreases rapidly with the increase of electrical distance. Based on the linearized expression for SCC, a transmission switching model with SCC limitation and N-1 reliability constraints is proposed. Furthermore, to assure the calculation accuracy for the SCC, an iterative algorithm is designed to compensate for the linearization error. Case studies on the modified IEEE 30-bus, 118-bus and practically-sized 300-bus systems validate the effectiveness of the proposed model and algorithm. The solving efficiency of the model is investigated and discussed as well.