Abstract: By adopting a temporary coordinate system and adding one angular constraint and two translation constraints on the base of hyperbolic’s least squares orthogonal distances fitting algorithm, a hyperbolic settlement model based on least squares orthogonal distances fitting was put forward in this paper, in order to fit the settlement data to a hyperbolic using geometric fitting algorithm rather than algebraic fitting algorithm. The results of an example show that the advanced algorithm has a better accuracy by comparison of the traditional fitting algorithm.