In this paper, we present a new design of a compact power divider based on the modification of the conventional Wilkinson power divider. In this new configuration, length reduction of the high-impedance arms is achieved through capacitive loading using open stubs. Radial configuration was adopted for bandwidth enhancement. Additionally, by insertion of the complex isolation network between the high-impedance transmission lines at an arbitrary phase angle other than 90 degrees, both electrical and physical isolation were achieved. Design equations as well as the synthesis procedure of the isolation network are demonstrated using an example centred at 1 GHz. The measurement results revealed a reduction of 60% in electrical length compared to the conventional Wilkinson power divider with a total length of only 30 degrees at the centre frequency of operation.