In this paper, a hundred-watt-level near-diffraction-limited step-index Yb-doped fiber (YDF) laser near 980 nm is demonstrated firstly, to the best of our knowledge. By using the 11.7-W 979-nm single-mode seed light, the in-band amplified spontaneous emission (ASE) is well suppressed and the maximum output power of 101.5 W with the beam quality (M2 factor) of 1.285 was obtained. This work does not only propose an effective method for the suppression of in-band ASE, but also provides a cost-effective solution of hundred-Watt-level near-diffraction-limited fiber lasers near 980 nm.