The process of the reform of "villages in cities" includes the conflicts and coordination of the interests of governments,villagers and development businessmen.Dynamic game theory is used to analyze the relationship between the three interested parties and the equilibrium results show that there are three modes which can be chosen in the reform of "villages in cities" such as governmental leading type,villagers' autonomous type and mutual reform type of government,villagers and development businessmen.The successful implementation of these modes should follow the related premise and government departments should use optimal reform mode on the basis of real situation.