A novel method to prepare low-oxygen and high-titanium ferroalloy by multistage and deep reduction was proposed in this study. Specifically, the raw materials, high titanium slag and iron concentrate are firstly reduced by insufficient Al powder to obtain high temperature melt. Secondly, CaO and CaF2 are added into the melt to adjust the basicity of the molten slag. Then, a melt separation under the heat preservation is carried out to intensify the slag-metal separation. Finally, calcium or magnesium is added into the metal melt for a deep reduction. Thereafter, high titanium ferroalloy with an extra-low oxygen content can be obtained. Effects of slag basicity and melt separation time on the slag-metal separation removal were systematically studied. The results indicate that the high titanium ferroalloy, produced by the thermite method, contains a lot of Al2O3 inclusions. This leads to a high oxygen and aluminum content in the alloy. With a melt separation with high basicity slag treatment, the Al2O3 inclusions can be effectively removed from the alloy melt, and the slag-metal separation efficiency is greatly improved. With the addition of high basicity slag during melt separation, Ti content in the alloy is improved from 51.04% to 68.24%. Furthermore, and the Al and O contents are reduced from 10.38% and 9.36% to 4.24% and 1.56%, respectively. However, suboxides, such as Ti2O and Fe0.9536O, still exist after a melt separation. This indicates that a deep reduction is needed to obtain extra-low oxygen high titanium ferroalloy.