In order to reduce the loss of degree of freedom (DOF) brought by the transmit sub-array splitting of two dimensional hybrid multiple input multiple output (MIMO) phased radar, this paper presents a design method of transmitting and receiving array based on the nested array structure. Firstly, a two dimensional hybrid MIMO phased radar transmitting array based on the one dimensional nested array is presented. On this basis, the receiving end is set as a nested array, and finally a virtual array and difference coarray are formed to expand the number of virtual array elements. The expansion increases the DOF of arrays while preserving the advantages of hybrid MIMO phased radars. At the same time, the closedform expressions of array manifolds are also given. Based on the maximum DOF criterion, the optimal number of nested array elements at the transceiver is deduced. Simulation experiments show that compared with the traditional and coprime hybrid MIMO phased radar, the proposed method can effectively improve the array DOF and direction of arrival estimation accuracy.