According to the merits and drawbacks of the arc-suppression coil and the fault transfer device, an arc suppression method based on transferring residual current is proposed. The fault point current is compensated to a smaller value by arc suppression coil, and then the residual current of the fault point is transferred by the fault transfer device, so that the arc is reliably extinguished. In order to reduce the negative impact of the false action of the transfer device, a two-stage switch structure is adopted and the current-limiting resistor is used to limit the current of the first stage. By detecting the voltage or current of the current-limiting resistor, it can distinguish the correctness of the transfer device action and whether the arc is extinguished, which provides a reliable basis for the control of the fault transfer device. The simulation results show that this method can reduced the residual current of fault point and can also avoid the risk of false action.