A new smooth merit function was constructed for nonlinear complementarity problems (NCPs). Like as the merit function based on the famous FischerBurmeister function, the stationary point of the merit function is the solution of NCP when the function is only a P0-function, and the merit function has good coercive property. A damped Newton-type algorithm which based on the merit function was presented. The global and local superlinear or quadratic convergence results were obtained under suitable conditions. Furthermore, the finite termination property was obtained for affine case with P-matrix without using the hybrid switch technique or additional step as corrector Newton step as usual. Numerical results suggest that the method is promising.
