A new variable step size LMS algorithm (CoLMS algorithm) based on two cooperative adaptive filters was proposed. In the CoLMS algorithm, the step size of each component filter was adjusted according to the comparison result of the two component filters’ performance at current stage. And the output of the better component adaptive filter was chosen as that of the overall adaptive filter. The CoLMS algorithm is not sensitive to the magnitude of the output noise and has a good tracking ability in the stationary or slowly changed environment. In order to further improve the tracking ability of CoLMS in abruptly changed environment, a modified CoLMS algorithm is also presented. The efficiency of the new algorithms is verified by the simulation results in system identification under the noises of different magnitudes.