Transparent data replication has been considered a promising technique for improving system performance for a large distributed network. In this paper, a hybrid transparent replication model is presented. We address the problems of replication proxy placement in the network and data replica placement on the installed proxies given that a maximum of M proxies are allowed. Both reads and writes are considered in these problems. The performance objective is to minimize the total data transfer cost. To address the placement problems, we first present the optimal solutions for a single object in a tree network without/with constraint on the number of replicas. Based on that, two schemes, namely, aggregate access (AGGA) and weighted popularity (WPOP), are proposed for the replication proxy placement problem. An optimal solution is described for the replica placement problem. The performance of the proposed placement schemes is evaluated with a set of carefully designed simulation experiments over a wide range of system parameters. The results give us several helpful intuitions in deploying transparent replication proxies in a practical system.