A compact multi-layer N-way power-dividing structure with good isolation and output return loss performance is proposed. The isolation network is circularly distributed that constitutes a closed ring-shaped architecture. The equivalent circuit model is given and the [S] matrix is developed to analyse and design the power-dividing structure. Finally, a six-way power divider centered at 2.1 GHz is designed and fabricated. The measured and simulated results agree well with each other. The total size of the power divider is 0.13λg × 0.19λg.