An adaptive formation navigation algorithm based on attenuation factor is proposed for long-term high-precision formation navigation of distributed satellites. Firstly, the relative motion equation of formation satellites is established based on e/i vector. Secondly, the conversion between inter-satellite relative position and the relative orbital elements is completed. Finally, the adaptive attenuation factor is introduced to increase the stability of the system and complete the high-precision relative navigation estimation. The simulation data shows that this method can overcome the linearization error of the model, has higher configuration determination accuracy than the traditional CW navigation algorithm, and can achieve long-term stable formation navigation.