Since the clustering by data competition algorithm has poor performance on complex datasets, a density-sensitive clustering by data competition algorithm was proposed. Firstly, the local distance was defined based on density-sensitive distance measure to describe the local consistency of data distribution. Secondly, the global distance was calculated based on local distance to describe the global consistency of data distribution and dig the information of data space distribution, which can make up for the defect of Euclidean distance on describing the global consistency of data distribution. Finally, the global distance was used in clustering by data competition algorithm. Using synthetic and real life datasets, the comparison experiments were conducted on the proposed algorithm and the original clustering by data competition based on Euclidean distance. The simulation results show that the proposed algorithm can obtain better performance in clustering accuracy rate and overcome the defect that clustering by data competition algorithm is difficult to handle complex datasets.