Diffusers are widely-used to quickly dilute effluents in receiving water bodies. This study proposed a novel diffuser that pre-mixes effluent with ambient water before discharging and that uses the swirling jet to further enhance near-field dilution. The nozzle of the diffuser was examined in two ambient flow conditions: co-flow and counter-flow that are commonly-met in the environment such as oceans due to tidal effect. Physical experiments were first conducted in co-flow on its dilution performance and hydrodynamics, using heated water as the effluent. A 3-D CFD model was developed and calibrated the co-flow scenarios, and then used to investigate the diffuser in counter-flow. The results showed that the nozzle can effectively reduce the maximum temperature rise of the effluent by about 50 % before discharging. The swirling jet from the outlet has a larger shear area, half-width and entrainment rate, enabling the effluent to be rapidly diluted to a minimum of around 10 times at x/D = 6 in co-flow, whereas the dilution for conventional nozzles is about 1 because of the potential core. The flow amplification ratio (α) decreases gradually with increasing velocity ratio in co-flow but increases with increasing velocity ratio in counter-flow. The counter-flow reduces the water drawn into the device; however, the pre-dilution effect at the outlet remains stable. The near-field dilution in counter-flow was significantly enhanced than that in co-flow. Environmental regulations at outfalls and mixing zones can be more easily met using this novel diffuser.