Simulation of near-well flow around a single well in reservoirs is normally studied using radial logarithmic grids. A promising method for more complicated, multi-well cases is a combined approach of using a Cartesian and a radial grid. In this paper, a new method of overlapping grids is introduced in which a radial grid is overlapped on a coarse Cartesian grid in the area around a well. Connectivity between the two grids is established using an appropriate boundary condition. Five different algorithms of grids connectivity with internal boundary conditions are presented in which the data are transferred between the grids by interpolation pressure and saturations in each grid. This method is implemented in the open-source Matlab Reservoir Simulation Toolbox (MRST) using the modified black-oil model. The proposed approach is validated by simulation of a reference fine radial grid model on a gas-condensate reservoir. Comparing the results with the reference model indicates that the proposed Double-Scale method using a 21 × 21 coarse Cartesian grid is as accurate as a 1001 × 1001 simple Cartesian fine grid model. Then, a double-layer numerical problem with two production wells was simulated and sensitivity analysis was conducted to investigate the effect of critical condensate saturation and vertical permeability. Finally, the second SPE comparative solution project was simulated to compare the performance of the proposed method with the use of the perpendicular bisector (PEBI) grids around the well. Results showed that the accuracy of the PEBI grid and Double-Scale method are comparable. However, the proposed Double-Scale method is almost 2 times faster in this specific problem.