New approach to a vacuum ultraviolet (VUV) source based on mirror-confined plasma is presented. A plasma cloud with ne=1016−1017 cm−3 and Te=10–50 eV serves as an active medium. Such plasma can be obtained in GOL-3 facility by means of two-stage heating by relativistic electron beam. Current experiments on GOL-3-II facility are described. Results of recent study of VUV flush from hydrogen and nitrogen plasma with calculations of ionisation balance and radiation power are presented. Transitions in Li-like ions for recombination scheme and in Ne-like ions for collision excitation scheme are considered as a candidates for coherent VUV generation. Prospects of population inversion and gain achievement are discussed.