We study the motion of a 1-D closed elastic string with bending and stretching energy immersed in a 2-D Stokes flow. In this paper we introduce the curves tangent angle function and the stretching function to describe the deferent deformations of the elastic string. These two functions are defined on the arclength coordinate and the material coordinate respectively. With the help of the fundamental solution of the Stokes equation, we reformulate the problem into a parabolic system which is called the contour dynamic system. Under the non-selfintersecting and well-stretched assumptions on initial configurations, we establish the local well-posedness of the free boundary problem in Sobolev space. When the initial configurations are sufficiently close to the equilibrium state (i.e. an evenly parametrized circle), we prove that the solutions can be extended globally and the global solutions will converge to the equilibrium state exponentially as t → +∞.