With the continuous improvement of the power market, the operation mechanism of power distribution market including multiple virtual power plants becomes increasingly complex. This paper constructs a bi-level optimization model for market clearing strategy and dynamic pricing design for distribution power market with multiple stakeholders. The upper level minimizes the cost of distribution system operators considering the power flow and operational security constraints. The lower level maximizes the revenue of the virtual power plant for economic scheduling. On this basis, the linearization techniques and the complementarity principles are adopted to transform the lower level problem into equilibrium constraints. Then, the original nonlinear bi-level optimization model is transformed into a single-level mixed integer linear programming model using strong dual theory. Case study verifies the effectiveness of the proposed model.