Based on the transverse electro-optic effect of lithium niobate crystal, combined with polarizers and Faraday rotator, this paper presents a collinear closed-loop fiber optic current transformer with spatial non-reciprocity modulation method, and the feasibility of the scheme is verified by both the theoretical and experimental evidences. The detection scheme avoids the limitation of the transition time of the sensing fiber coil on the phase modulation frequency, improves the sensitivity and stability of the system, and reduces the volume and cost of fiber optic current transformer. The sawtooth wave modulation scheme is adopted to realize phase bias modulation and feedback modulation through phase shift of sawtooth wave to achieve closed-loop detection effect, which enhances the signal to noise ratio and simplifies demodulation mode. The experimental results show that the current ratio errors measured at room temperature range from 1% to 120% of rated current meet the requirements of national standard GB/T 20840.8-2007 and reach the accuracy level of 0.2S. The temperature stability of the current transformer is also tested, and the ratio error measured at the rated current does not exceed ±0.2% in the range of –30 ℃ to 50 ℃.