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To achieve fast link failure detection in all-optical networks, the notion of monitoring-cycle (m-cycle) is introduced. The best known m-cycle construction algorithm (HST ) adopts a spanning tree-based approach. In this paper, we propose a new algorithm M2-CYCLE to construct a set of minimum-length m- cycles (or m2-cycles) for more efficient link failure detection. We prove that the performance of M2-CYCLE is never worse than any spanning tree-based approach. Comparing M2-CYCLE to the existing algorithms, we show that it uses the least amount of network resources (measured by the number of cycles, cover length and monitoring wavelength requirement) to achieve the most accurate link failure detection (measured by localization degree).