Since standardized tests of English foreign language seem to lack external validity, a new test, the New Cloze Test (NCT), was developed and validated as a placement test for foreign students. Details of the test design, including paragraph preparation, word deletion, and recommended methods for administration and scoring are discussed. Subjects were 136 students at the Center for English as a Second Language, Southern Illinois University, all recent immigrants, representing twelve languages. One form of the NCT was administered at the beginning of a training session along with three placement tests: the Structure and Listening sections of the Comprehensive English Language Test for Speakers of English as a Second Language, and the Reading for Understanding Placement Test. Another form of the NCT was given at the end of the session along with the Michigan Test of English Language Proficiency. Scores on all of these tests, as well as a teacher evaluation report were subjected to comparative analysis. The results indicated that the NCT is highly reliable, valid, and efficient, with respect to testing time and ease of scoring. The NCT satisfies all conditions of a good test, although a few technical problems should be investigated in further research. (CP)