The automated steering control technology is crucial for autonomous vehicles, and lane-keeping control systems have been developed extensively, but various traffic conditions, and obstacles ahead of the ego vehicle would cause serious traffic collision accidents. Therefore, this paper proposes a virtual fluid-flow-model (VFFM) based lane-keeping integrated with collision avoidance control system (LKCA) to realize the function of both lane-keeping and collision avoidance. Firstly, a novel lane-keeping model is proposed which is inspired by viscous fluid flowing between two parallel plates or around a cylinder. Then, based on the proposed VFFM-based lane-keeping model, the ego vehicle’s path can be planned, and it ensures the performance of lane-keeping and obstacle-avoidance. Finally, an optimal-preview-driver-model-based path tracking controller is designed to track the desired VFFM-based path. The proposed control system is evaluated by both co-simulations of MATLAB/Simulink & CarSim and real-bus tests. Results show the effectiveness of the proposed control system, and it can ensure lane-keeping performance on the premise of obstacle-avoidance.