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A stable and switchable dual-wavelength polarization-maintaining erbium-doped fiber ring laser is proposed and demonstrated experimentally by using a novel filter, which is formed from dual-pass Mach-Zehnder interferometer incorporating a sagnac loop. By adjusting the polarization controllers, the output laser can be switched between single- and dual-wavelength. The wavelength spacing of the dual-wavelength can be tuned from 0.084 to 4.26 nm. Its 3-dB bandwidth and side mode suppression ratio are less than 0.015 nm and higher than 64 dB, respectively. In addition, the peak power fluctuation and wavelength shift are monitored to be less than 0.5 dB and 0.01 nm during an hour, respectively. The characteristics of the novel filter in experimental measurement accord with the result of theoretical analysis.