A numerical study has been performed in an axisymmetric diffuser followed by a casing-liner annulus of a typical gas turbine combustor to analyze the flow structure and pressure recovery in the geometry. Static pressure recovery in a gas turbine combustor is important to ensure high pressure of air around the liner. However, the irreversible pressure losses reduce the static pressure recovery from the ideal value. The presence of swirl in the flow from compressor and prediffuser geometry before the dump diffuser influences the flow pattern significantly. In this study, flow structures are numerically predicted with different prediffuser angles and inlet swirl levels for different dump gaps. Streamline distributions and pressure plots on the casing and liner walls are analyzed. Static pressure recovery coefficients are obtained from the pressure distributions across the combustor. The effect of dump gap on the static pressure recovery has also been evaluated. It is observed that the best static pressure recovery can be obtained at optimum values of inlet swirl level and prediffuser angle. Dump gap is found to have significant influence on the static pressure recovery only at small prediffuser angle.