The invention provides a novel external control type hydraulic circulating valve. The novel external control type hydraulic circulating valve comprises a hollow valve body; a cylindrical valve base is arranged on a base of the valve body; the valve base is fixedly connected with a cylindrical sleeve; multiple oil holes are uniformly distributed in the side wall of the sleeve; the side wall of the valve body is fixedly connected with a side pipe; one end, far from a shell, of the side pipe is fixedly connected with a flange; an annular valve cover is mounted on the top surface of the valve body; a cylindrical valve sleeve is vertically arranged in an inner hole of the valve cover; the inner hole of the valve sleeve consists of three step holes; a T-shaped valve element reversely positioned and capable of performing a reciprocating motion up and down along self axis is arranged in the inner hole with the smallest diameter; a piston is mounted at the upper end of the valve element; an upper cavity and a lower cavity not communicated with each other are formed in the valve sleeve; an end cover is provided with an overflow valve and a runner respectively communicated with the two cavities; and a pressure sensor is mounted on the valve cover. The hydraulic circulating valve is excellent in sealing performance, is free of an opening dead area of the valve element, capable of being used for high-flow working condition, stable in external control of oil liquid pressure, sensitive in response and continuous and adjustable in flow parameters, and has the advantages of small size and light weight.