Mixture gas arcs are used extensively in welding manufacturing. A two-dimensional steady mathematical model for Ar-O₂ mixture gas arc is developed to understand further the heat and mass transfer of the mixture gas arc. The model is based on the assumption of local thermodynamic equilibrium, and the thermodynamic parameters and transport coefficients are dependent on both the temperature and the oxygen content. In the present model, the diffusion between the argon species and oxygen species is depicted by the approach of the combined diffusion coefficient, i. e. the mixture gas arc is simplified into two different species, and the diffusion between them is formulated by combined ordinary diffusion coefficient and combined temperature diffusion coefficient; the oxygen distribution and its influence on the temperature and flow field of the arc are investigated for two different current conditions. It is shown that the oxygen species presents significant non-uniform distribution for argon gas mixed with 5% oxygen; the oxygen content is higher than that in mixed shielding gas in the regions close to the electrodes and arc axis, while its content is lower than that of the mixed shielding gas in other regions. For high current, oxygen concentrates more to the flat anode, while it concentrates more to tungsten cathode for low current. For both cases, oxygen content is inhomogeneous in the region 0.1 mm above the anode. The 5% oxygen mixed in argon constricts the arc plasma to some extent and thus raises the arc temperature as well as the plasma flow velocity.