The design of diffractive phase elements (DPE′s) with polarization selectivity is presented, which can realize polarization demultiplexing and spatial focusing simultaneously. The design scheme is based on the general theory of amplitude-phase retrieval and Y-G iterative algorithm. A set of equations for determining the modulation depth distribution of the surface-relief DPE is derived. Two model designs are carried out. The numerical simulations show that this suggested approach can achieve successfully the design of desired pattern.