This paper describes a design technique of perfect reconstruction (PR) two-channel IIR filter bank. M.J.T. Smith et al., gave two types of PR IIR filter bank systems. One is the system such that the analysis and synthesis filters with nonlinear phase are implemented with all-pass polyphase filters and satisfy the power complementary condition approximately. The other is the system such that all the analysis and synthesis filters have liner phase responses and do not satisfy the power complementary condition. To improve coding performance, we propose a filter bank system such that all the analysis and synthesis filters have linear phase and satisfy the power complementary condition approximately.