Liver hydatid disease is a common parasitic disease in farm and pastoral areas, which seriously influences people's health. Based on CT imaging features of this disease, an iterative approach for liver segmentation and hydatid lesion extraction simultaneously is proposed. In each iteration, our algorithm consists of two main steps: 1) according to the user-defined pixel seeds in the liver and hydatid lesion, Gaussian probability model fitting and smoothed Bayesian classification are applied to get initial segmentation of liver and lesion; 2) the parametric active contour model using priori shape force field is adopted to refine initial segmentation. We make subjective and objective evaluation on the proposed algorithm validity by the experiments of liver and hydatid lesion segmentation on different patients' CT slices. In comparison with ground-truth manual segmentation results, the experimental results show the effectiveness of our method to segment liver and hydatid lesion.