This paper proposes a new approach that combines the cutting processes for extruding a billet. A trough is laid on the die, and the ram module is used to press the billet before extrusion. The diameter of the punch does not need to be equal to that of the die. It can have two situations: negative clearance (extrusion) and zero as well as positive clearances (blanking). In this approach, a cutting process is combined with a high hydrostatic stress produced from the trough on the die cutting edge, and this can substantially eliminate fracture in the shear zone. A series of experimental tests for forming the shapes of a cylinder and spur and cycloid gears were performed. The results indicate that this approach can extrude a billet with an excellent burnished surface. The test ranges of the surface roughness for the burnished surface were 0.03-0.12 μm, and the tolerance band for the diameter ranged from IT3 to IT6. This new approach provides the precise sizes higher than those obtained using conventional extrusion.