The invention discloses a production method of high-bulk density and high-stability vanadium trioxide, which is characterized by comprising the following steps of reducing dry ammonium vanadate with reducing gas to obtain powdery vanadium trioxide; extruding the powdery vanadium trioxide by a feeder and a roller press to form strip vanadium trioxide; performing granulation and screening to form granular vanadium trioxide. The method is simple in production process, low in cost and suitable for large-scale industrial production. By adopting the method, the bulk density of the granulated vanadium trioxide is increased from 0.9-1.0g/cm<3> to 2.0-3.0kg/m<3>, the internal gas content is reduced, the oxidation is slowed down, the problem of inaccurate total vanadium content caused by natural oxidation of raw materials in the fields of ferrovanadium smelting and nitralloy production is solved, the loss of flying materials is greatly reduced, the vanadium yield of the system is improved, and the unit-time output of vanadium nitride or ferrovanadium also can be remarkably increased.