Virtual enterprise is a temporary alliance of enterprises that come together to share skills, core competencies or resources. Each enterprise forming a virtual enterprise has to select appropriate business partners to realize profitable management with eliminating the risk. In this paper, the negotiation process in virtual enterprise formulation is focused as a basic study to clarify its effective management. We develop a computer simulation model to form a virtual enterprise through multiple negotiations amongst several potential members in the negotiation domain, and clarify the negotiation dynamism in the virtual enterprise formation.