The invention provides a machining and forming assembly and method of a VL type cage. A system comprises a radially extendable and retractable spindle. The radially extendable and retractable spindlecomprises a spindle body, a pushing shaft, a pushing shaft fixing seat, a first resetting structure, multiple inclined rolling way convex blocks and a locating and supporting piece. The first resetting structure is arranged between the spindle body and the pushing shaft fixing seat. The locating and supporting piece is fixed to the spindle body. A pushing shaft channel is formed in the spindle body. The pushing shaft is partially inserted into the pushing shaft channel. The pushing shaft and the inclined rolling way convex blocks form a guiding pushing structure. The locating and supporting piece and the spindle body cooperate to form multiple convex block cavities. The spindle body is provided with multiple convex block outlets corresponding to the convex block cavities in a one-to-one manner in position. The inclined rolling way convex blocks are arranged in the convex block cavities and connected with the locating and supporting piece through second resetting structures. By the adoption of the machining and forming assembly and method of the VL type cage, production links can be simplified, the production cost is saved, and energy consumption is lowered.