Shen method has been applied to the GPS measurements results in order to investigate crustal deformation of the Azerbaijan and surrounding areas. The field of velocity vectors obtained from the results of the GPS measurements conducted from 1998-2012 time period in Azerbaijan, İran, Georgia and Armenia used to estimate the deformation rates. Compression observed along the Greater Caucasus, Gobustan, Kura depression, Nakhchivan and the border areas with Iran. Compression axis shows that reduction of the Earth’s crust in the Greater Caucasus happens towards N-NE direction.The maximum value of the strain rate of about 400 × 10-9 per year was observed in the area between points KHID (Khidirly) and SHIK (Shikhlar) and here compression axis changes direction to the SW-NE. Along with areas of compression in the deformation field, there is a evident area where almost no deformation. Such zones are the Pre-Caspian-Guba region and northern Gobustan. Extension zones are observed in the Lesser Caucasus: in Gedebey (GEDA), Shusha (SHOU) areas and in the area located between the points DAMO and the PIRM, where the dilatation rate reaches 100 ×10-9 per year.