Various methods and systems for implementing a sectored least recently used (LRU) cache replacement algorithm are disclosed. Each set in an N-way set-associative cache is partitioned into several sectors that each include two or more of the N ways. Usage status indicators such as pointers show the relative usage status of the sectors in an associated set. For example, an LRU pointer may point to the LRU sector, an MRU pointer may point to the MRU sector, and so on. When a replacement is performed, a way within the LRU sector identified by the LRU pointer is filled.