Method of replacing data in a cache

A least recently used cache replacement system in which the data cache is logically partitioned into two separate sections, demand and prefetch. A cache directory table and a least recently used table are used to maintain the cache. When a new demand data page is added to the cache, a most recently used (MRU) pointer is updated and points to this new page. When a prefetch page is added to the cache, the lease recently used pointer of the demand section is updated with its backward pointer pointing to this new page. A cache hit on a demand of prefetch page moves that page to the top of the least recently used table. When a free page is needed in the cache, it is selected from the demand or prefetch sections of the memory based on a comparison of the demand hit density and the prefetch hit density so to maintain a balance between these two hit densities.