A novel model and multistage algorithm for distribution network reconfiguration considering system reliability are presented. Through the analysis of the reliability indices architecture， average service availability index（ASAI） and energy not supplied（ENS） are selected as the core indices for system reliability， combining the power loss index in traditional distribution network reconfiguration model. These three indices are included in the multi-objective function in a novel model. The satisfaction degree of the three indices are constructed based on their dimension and features. A fast multistage algorithm is used to solve this optimization problem. In this algorithm， reliability indices are not computed in the earlier reconfiguration stage， instead， they are only computed in the later reconfiguration stage. Test results clearly demonstrate the efficiency of the proposed model and algorithm.