The concentration dependence of the fluorescence and lifetime evolutions of states relevant to three near-infrared emission bands were measured and analyzed for Tm:SrF2 crystals. The fast quenching of ∼1.2 μm fluorescence (3H5) was observed as the Tm concentration increased. The cross-relaxation and multi-phonon relaxation processes between Tm3+ ions cannot explain this phenomenon. Through spectral and rate-equation analysis, two possible energy transfer mechanisms, cross-relaxation from the 3H5 level and cooperative energy transfer within Tm3+ clusters, are proposed. And based on the new modified model, the quantum efficiency of the Tm ∼2 μm lasers could surpass the traditional 200% limit. This new energy transfer has the potential for exceptionally high efficiency excitation of Tm-doped laser materials.