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Presented is a novel algorithm for fingerprint template formation and matching in automatic recognition. The algorithm does not rely on any core, singularity point or minutiae orientations, on which most established algorithms are based for template formation. Therefore, the algorithm has made the template structure invariant to global rotation and translation. The template structure is based on the local features of each minutia such as distances to its nearest neighbours and their internal angle. Comparing this novel algorithm to benchmark algorithms has shown that the algorithm has maintained a high accuracy of error equal rate less than 3.5% together with significant reduction in the computation requirements.