In this paper, a type of closed sets, called *-g-closed sets, is introduced and studied in an ideal topological space. The class of such sets is found to lie strictly between the class of all closed sets and that of generalized closed sets of Levine [5]. We give some applications of *-g-closed set and *-g-open set in connection with certain separation axioms. © 2015, University of Nis. All Rights Reserved.