PURPOSE: To knit a lined knitted fabric without passing fleecy yarn through the inside of a hook by carrying out plain knitting at a yarn feed port of ground yarn and feeding the fleecy yarn at a yarn feed port thereof positioned lower than a latch opening and closing region of each knitting needle at a knitting or welt position.

CONSTITUTION: Ground yarn 54 is fed into each knitting needle (2A) with a yarn carrier provided at a yarn feed port to carry out plain knitting with the knitting needle (2A) vertically moving to a knitting position. Each knitting needle (2B) is located at a knitting or welt position in a yarn feed port of fleecy yarn 55. Feeding of the fleecy yarn 55 is carried out at a lower position than a latch opening and closing region with a yarn carrier (18a) for the fleecy yarn 55 without feeding the fleecy yarn to a knitting needle hook (2c).