A regenerative gas turbine cycle wherein heat recovery is carried out by a mixture of air/steam which is obtained by contact between water and compressed air, the compressed air being compressed by a compressor for compressing gas using air or air based gas as a combustion supporting/working medium gas. The cycle includes the improvement whereby mixture of air/steam and liquid phase cooled water is obtained through contact between the compressed air and heated water which is used as heat recovering medium; the cooled water being used as heat recovering medium not only for heat recovery of turbine exhaust gas but also, for(a) intercooling of the compressor, and/or(b) precooling of compressed air for the contact operation.Water corresponding to the amount of water which contacts the compressed air and is lost by evaporation is added to the liquid phase water for contact or heat recovery as it is or after use as a heat recovering medium.