Based on the Ford-Fulkerson labeling algorithm which can realize network maximum flow, combining with “edge split path” thought, and through the new understanding of “reused link” and “super critical nodes”, an improved algorithm of reducing the network encoding nodes is proposed in this paper. The algorithm can not only reduce the network encoding nodes to know the necessary encoding nodes, but also determine the information transmitted on the network links using simple linear coding method at coding nodes. Simulation shows that, the proposed algorithm reduces the number of encoding nodes obviously while achieving the multicast maximum flow.