Abstract A novel 0.98/1.55 μm dichroic coupler with high-extinction ratio and low insertion loss has been designed and implemented on LiNbO3 for Erbium-doped fiber amplifier applications. The design of dichroic coupler is based on a modified directional coupler structure with a single bend in each channel. Beam propagation method is used to analyze the coupler performance to get the optimal parameters for device design, such as channel width, titanium thickness, channel gap, and interaction length. Samples with the signal coupling ratio as high as 100% and pumping power ratio as high as 95% have been obtained.