In high speed machining, the generated heat produces very high temperatures at the tool-work interface. Heat generated at the cutting area may shorten tool life, damage work piece surface, affect surface characteristics, and hence increase production cost. To deal with these problems, cutting fluids are used. Unfortunately, these fluids cause harmful effects to the operators and serious problems of pollution to the environment. Therefore, a new approach is developed to reduce the cutting tool temperature without using external coolants, and thus considerably reduce the amount of the hazardous waste being disposed to the environment. It removes a portion of the generated heat from the tool-work interface by flowing water in a closed cooling cycle system. The approach was analyzed and verified using Finite Element Analysis. Results were compared to the dry and wet cutting cases obtained from literature, and it was found that temperatures on the flank and rake faces of the tool can be lowered, and the overheated area of the tool tip, and consequently its wear, can be reduced significantly.