A new material constitutive law is implemented in a 2D finite element model to analyse the chip formation and shear localisation when machining titanium alloys. The numerical simulations use a commercial finite element software (FORGE 2005) able to solve complex thermo-mechanical problems. One of the main machining characteristics of titanium alloys is to produce segmented chips for a wide range of cutting speeds and feeds. The present study assumes that the chip segmentation is only induced by adiabatic shear banding, without material failure in the primary shear zone. The new developed model takes into account the influence of strain, strain rate and temperature on the flow stress and also introduces a strain softening effect. The tool chip friction is managed by a combined Coulomb-Tresca friction law. The influence of two different strain softening levels and machining parameters on the cutting forces and chip morphology has been studied. Chip morphology, cutting and feed forces predicted by numerical simulations are compared with experimental results.