In this paper, thermodynamic performance of oxy-biogas regenerative gas turbine cycle with CO2 recirculation is evaluated. The CO2 stream is split into the primary and dilution zones. In the primary zone, chemical-equilibrium-model is applied for exergy analysis. Influences of relevant parameters—CO2-to-O2 molar ratio (CtO) in the primary zone and primary diluent ratio (PDR)—on the temperature of combustion chamber (CC) and turbine, net produced power, thermal efficiency, specific fuel consumption (SFC) and CO2 capturing mass flow rate are studied. Decreasing CtO and raising PDR result in high net produced power. Thermal efficiency has a maximum value in the range of CtO (1.5<CtO<4.0) and PDR (0.2<PDR<0.6) and by enhancing CtO, exergy destruction diminishes in both zones. With increasing the CtO in the range of 1.5–2.98, thermal efficiency is increased by 9.92% while variation of CtO in the range of 2.98–4 results in reduction of thermal efficiency by 1.3%. In the range of PDR, the minimum value of SFC is 388 g/kWh and in the range of CtO, the lowest achievable SFC is 387.4 g/kWh. Additionally, dilution zone exergy destruction and CC exergy efficiency increases with PDR and CtO. The two-zone model provided an appropriate control on the turbine inlet temperature.