Clustering is one of the better known unsupervised learning methods with the aim of discovering structures in the data. This paper presents a distance-based Sweep-Hyperplane Clustering Algorithm (SHCA), which uses sweep-hyperplanes to quickly locate each point’s approximate nearest neighbourhood. Furthermore, a new distance-based dynamic model that is based on 2 N -tree hierarchical space partitioning, extends SHCA’s capability for finding clusters that are not well-separated, with arbitrary shape and density. Experimental results on different synthetic and real multidimensional datasets that are large and noisy demonstrate the effectiveness of the proposed algorithm.