The interaction between cylinder oscillation and the shedding of vortices is investigated numerically in this paper. The near wake structure is presented for different values of reduced velocity of a circular cylinder free to oscillate transversely. The method used for the simulation is based on the Vortex-in-Cell formulation incorporating viscous diffusion. The Navier-Stokes equations are solved through the vorticity-velocity formulation, assuming that the now is two-dimensional. The operator-splitting technique, where convection and diffusion of vorticity are treated separately, is used. The convection part is modelled in a lagrangian way, assuming that the vorticity field is carried on a large number of discrete vortices, while the diffusion part is calculated through the finite-volume method. The calculations are carried out on an unstructured mesh, using the finite-volume technique to solve Poisson's equation for the stream-function and the diffusion equation for the vorticity. Vorticity is created due to the no-slip condition on the cylinder wall, and the mesh is finer close to it in order to have a better description of the boundary-layer. The mesh is also refined behind the cylinder, in order to have a good description of the vortex dynamics in the near-wake region.