In this paper, a novel modified scheme and effective computer representation for design of a plunge shaving cutter is presented. The paper aims to develop a novel design of shaving cutter for plunge shaving of precision involute gears. The study is carried out on the premise of satisfaction of the fifth necessary condition of proper part surface generation (PSG) when designing the plunge shaving cutter. In the current study, the author’s earlier developed DG/K method of surface generation is used together with the principal elements of analytical mechanics of gears. (The DG/K method is based on fundamental results obtained in differential geometry of surfaces, and on kinematics of multi-parametric motion of a rigid body in the E3 space. The interested reader may wish to go for details to the monograph: Radzevich, S.P., Fundamentals of Surface Generation, Monograph, Kiev, Rastan, 2001, 592 pp., and to: Radzevich, S.P., Sculptured Surface Machining on Multi-Axis NC Machine, Monograph, Kiev, Vishcha Schola, 1991, 192 pp.) In the particular case under consideration, the method employs (a) an analytical description of the gear tooth surface to be machined, (b) configuration of the plunge shaving cutter relative to the involute gear, (c) analytical representation of the coordinate systems transformations, and (d) the fifth condition of proper PSG that is adapted to finishing of precision involute gears. The fifth condition of proper PSG is investigated in the paper. On the premise of the obtained results of the investigation, a novel design of plunge shaving cutter for finishing of precision involute gears is proposed. The developed novel design of plunge shaving cutter can be used on shaving machines available on the market, e.g. on Gleason’s new Genesis™ 130SV computer numerical control (CNC) shaving machine.