In this study, we propose a novel junction terminal extension structure for vertical diamond Schottky barrier diode by using the n-Ga2O3/p-diamond heterojunction. The depletion region of the heterojunction suppresses part of the forward current conduction path, which increases the on-resistance slightly. On the other hand, the reverse breakdown voltage is enhanced obviously because of the attenuated electric field crowding. By optimizing the doping concentration, length, and depth of the n-type Ga2O3, trade-off between on-resistance and breakdown voltage with a high Baliga's FOM value is realized through Silvaco TCAD simulation. In addition, the effect of the work function of Schottky electrode is also evaluated. Those results are beneficial to realize a high-performance vertical diamond SBD.