In this paper, a novel reduced switch cascaded transformer multilevel inverter is proposed. In this structure, a new structure is replaced with conventional H-bridge inverter. It consists of four high frequency switches, two line frequency switches, and two transformers which can be assembled in one core with a specific winding connection. This topology can produce 5 or 7 voltage levels depending on transformers turns ratio. The simplicity and modularity are its advantages compared to the existing structures. Beside these advantages, due to its similarity with H-Bridge converter, it is possible to use a modified technique based on conventional phase shift pulse width modulation to generate switching pulses. Finally, the proposed inverter is simulated in Simulink. The results show the effectiveness of the proposed structure with the aforementioned advantages.