Abstract: Active distribution networks (ADNs) have an active management of distributed generators (DGs), active load and storage facilities. ADN not only purchase electricity from main network, but also provide ancillary services through a flexible dispatch mode. In a bilateral electricity market, the decision variables such as bid volume and price can influence the market clearing price (MCP). MCP can also have impacts on the dispatch strategy of ADN at the same time. This paper proposes a bi-level approach to formulate the optimal dispatch and bidding strategy of ADN, which can proportion energy market and ancillary services market. Simulation results on a typical ADN validate the feasibility of the proposed method. Finally, the impact of distributed energy resources (DERs) on the economic efficiency of ADN is analyzed.