A global two-dimensional hybrid simulation is carried out to study the evolution of the near-Earth plasma sheet. It is shown that reconnection X lines and plasmoids can be generated by diverging flows in the plasma sheet. These diverging flows can be caused by variations in the Maxwell stress due to variations of Bx and Bz components of the magnetic field outside the current sheet. In addition, the flow acceleration/deceleration in the plasma sheet can also be caused by variations in the local plasma mass density. Comparison runs have been made with a Harris model current sheet with zero Bz, and no evidence of reconnection is found. The results indicate that divergent plasma flow is a sufficient condition for reconnection even in a dissipation-less plasma.