The characteristics of hollow cathode discharge are investigated by using two-dimensional fluid model combined with a transport model for metastable atoms (F-M model) in argon. It shows that the stepwise ionization is one of main important mechanism for electrons production. The distribution of electric potential, density of electrons, ions, and metastable atoms are calculated with a pressure of 10 Torr and a voltage of 250 V. The peak density of electron and ion is 1.2×1013 cm−3, and the peak density of metastable atoms is 3.5×1013 cm−3. The results obtained in F-M model are compared with that in fluid model (without metastable atoms involved). Metastable atoms are found to play an important role in the discharge. In addition, with the increase of pressure and voltage, the percentage of stepwise ionization in the total ionization increase, and the difference of discharge characteristics simulated by these two kinds of models rises.