By employing both frequency shifting and nonlinear polarization rotation mechanisms in a Yb-doped fiber laser, similariton operation regime is demonstrated. Directly generated pulses from an oscillator has a duration of 7.8 ps with 20.5 nm spectrum width and average output power of 7.4 mW with a repetition rate of 26.4 MHz. The pulses can be externally dechirped to be 140 fs. Through numerical simulations we illustrate the details of similariton pulse formation under the simultaneous action of two mode-locking techniques and advantages of hybrid mode-locking approach.