To encounter with Knowledge Management, the organizations should select appropriate knowledge strategy and knowledge management strategy. There are different methods for developing these strategies. In this study a System Dynamics model developed to select and integrate both strategies. In the proposed model organizational factors such as business strategy, structure, culture, human resource and IT infrastructure have been considered. On the other hand, from the dynamic approach perspective, the knowledge creation processes and the level of explicit or tacit knowledge have direct impact on selected strategies. In this paper all the stock variable and their initial value have been identified then the flow variable and theier increasing/decreasing rate have been determined and casual loops and stock and flow diagrams was proposed. At last after simulating and testing the dynamic model, different scenarios and policies have been presented for the case study. The results indicate improvement in both KM strategy and knowledge strategy. Keywords: knowledge management, knowledge management strategy, knowledge strategy, system dynamics