In this paper a novel cascaded transformer multilevel inverter is proposed. Each basic unit of the inverter includes two DC sources, single phase transformers and semiconductor switches. This inverter, which operates as symmetric and asymmetric, can output more number of voltage levels in the same number of the switching devices. Besides, the number of gate driving circuits is reduced, which leads to circuit size reduction and lower power consumption in the driving circuits. Moreover, several methods to determination of transformers turn ratio in proposed inverter are presented. Theoretical analysis, simulation results using MATLAB/SIMULINK and experimental results are provided to verify the operation of the suggested inverter.