The accurate identification of Very Fast Transient Overvoltage (VFTO) is the key of overvoltage control in modern smart grids. In order to accurately identify VFTO generated by the operation of a disconnector in Gas Insulated Substation (GIS), a VFTO identification method based on Wavelet Transform (WT) and Singular Value Decomposition (SVD) is proposed. The simulation model of VFTO is established in ATP-EMTP software first, and then wavelet decomposition is used in MATLAB software for VFTO simulation of the waveform from the ATP-EMTP software. Then, the feature matrix is composed of the coefficients of each frequency layer of the wavelet. The SVD is used to decompose the feature matrix, and finally the characteristic parameters of the VFTO are obtained. The simulation results in Matlab software indicate that the characteristic parameters of VFTO have an obvious difference compared with those of power frequency AC voltage, especially in the load-side, which verifies the effectiveness of the VFTO identification method based on WT and SVD proposed in this paper.