We propose a novel optical-regenerator based on two-transverse mode VCSEL with dual optical-injection locking. The nonlinear transfer function in input-output characteristics enables us to reshape the degraded input signal. In addition, the polarization state of the output signal can be tightly controlled. The CW assist light injected into the fundamental transverse mode increases the speed and stabilizes the polarization of the output light at the same time. A possibility of 4R (3R+Re-polarization) regeneration at 10 Gbps is suggested.