Many data mining algorithms focus on clustering methods. There are also a lot of approaches designed for outlier detection. We observe that, in many situations, clusters and outliers are concepts whose meanings are inseparable to each other, especially for those data sets with noise. Clusters and outliers should be treated as the concepts of the same importance in data analysis. In our previous work  we proposed a cluster-outlier iterative detection algorithm in full data space. However, in high dimensional spaces, for a given cluster or outlier, not all dimensions may be relevant to it. In this paper we extend our work in subspace area, tending to detect the clusters and outliers in another perspective for noisy data. Each cluster is associated with its own subset of dimensions, so is each outlier. The partition, subsets of dimensions and qualities of clusters are detected and adjusted according to the intra-relationship within clusters and the inter-relationship between clusters and outliers, and vice versa. This process is performed iteratively until a certain termination condition is reached. This data processing algorithm can be applied in many fields such as pattern recognition, data clustering and signal processing.
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