The effect of pump fluctuations on mode-competition of a two-mode laser with saturation effects is studied. By means of a linear stability analysis, some conclusions have been obtained. In strong coupling, if pump fluctuations are absent, the mode-competition effects are such that one mode can build up a stable oscillation and the other is suppressed. However, if pump fluctuations are present, two modes may build up stable oscillations at the same time. In weak coupling, if pump fluctuations are absent, the mode-competition effects give rise to two modes which may build up a stable oscillation. However, if pump fluctuations are present, one mode may be suppressed.