In the Fresnel transform domain, an effective improvement to the conventional iterative algorithm for designing the diffractive optical elements (DOEs) used for spatial beam shaping has been proposed. The algorithm can successfully achieve to design DOEs for beam shaping. Compared with conventional algorithm, this algorithm can provide faster convergence, more powerful ability to overcome local minimum problem and better shaping quality. By computer simulation, the result has shown that the DOEs designed by this algorithm has snch advantages as high uniformity at the main lobe, low profile error and steep edge.