In this paper, considering the non-linear Hoek-Brown failure criterion, a new theoretical model is presented to predict the stress components and estimate the plastic zone radius around a circular tunnel. The tunnel is excavated in an elasto-plastic rock mass subjected to plane hydrostatic and axial in situ stresses. Effects of the axial in situ stress on the plastic zone radius and stress components are studied. Based on the combination of plane hydrostatic and axial in situ stresses with the equilibrium equation and a suitable failure criterion (Hoek & Brown failure criterion), several cases are considered. For each case, the stress components, the plastic zone radius and the necessary conditions for its occurrence are determined. The results obtained by the present method are compared with those using Mohr-Coulomb criterion and with the experimental data, illustrating the validity of the present model in predicting the failure zone radius.