A review of some existing criteria for diffuse necking in sheet metals is given and their limitations are discussed. The introduction into production of new sheet materials whose plastic deformation is impossible to be modeled using Hill’s 1948 anisotropic yield function necessitates improvements of these existing criteria to accurately describe their necking behavior. In this paper, a generalization of the existing diffuse necking criteria for materials describable by Case IV of Hill’s 1979 anisotropic yield function is presented. The proposed criterion is consistent with the previous criteria. It predicts a significant effect of Hill’s 1979 yield surface shape factor on the critical principal strain in the range of negative minor strains while in the range of biaxial tension this influence is small.

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