Recycling of cotton (or rayon) cellulose as lyocell fibers is proposed based on the selective solubility of cellulose in organic N-oxides and the selective hydrolysis of polyesters in NaOH solutions. In the first step, the cotton component of a fabric made of 50/50 cotton/polyethylene terephthalate was separated from the polyester by basic hydrolysis of the latter in NaOH solutions. In the second step, the cellulose component from another sample of the same fabric was selectively dissolved in N-methyl morpholine monohydrate to form a 1-2％ cellulose solution. It was then concentrated to a spinable 15-17％ solution by dissolving the cotton separated in the first step. Lyocell fibers were subsequently spun at 85-90C using an advanced capillary extrusion rheometer system.