Concerning the low efficiency of present methods of IP lookup, a new data lookup algorithm based on Multi-Bit Priority Tries (MBPT) was proposed in this paper. By storing the prefixes with higher priority in dummy nodes of multi-bit tries in proper order and storing the prefixes for being extended in an auxiliary storage structure,this algorithm tried to make the structure find the longest matching prefix in the internal node instead of the leaf node. Meanwhile, the algorithm avoided the reconstruction of router-table when it needed to be updated. The simulation results show that the proposed algorithm can effectively minimize the number of memory accesses for dynamic router-table operations, including lookup, insertion and deletion, which significantly improves the speed of router-table lookup as well as update.