The invention discloses a drilling, cutting, discharging and diversion integrated coal seam physical and chemical combination permeability increase system and method, and belongs to soft coal seam pressure relief permeability increase systems and methods. The system comprises a chemical supply jet flow generation device, a drilling, cutting and discharging integrated device and a water, coal and gas separation device. In the chemical supply jet flow generation device, high-pressure water and chemical reagents are fed into a jet flow mixer to be fully mixed through a high-pressure water pump and a chemical adding pump, so that chemical supply jet flow is formed. The drilling, cutting and discharging integrated device can achieve the integration of drilling, slitting and in-hole slag discharging, and the frequency of the phenomenon that holes are blocked in the slitting process is reduced. The water, coal and gas separation device can completely separate the water, coal slag and gas mixture ejected out in the slitting process, separated gas enters an extraction pipeline, and water enters a water tank after being filtered to be recycled. According to the system, ground stress and gas pressure are relieved through slitting, and physical permeability increase is achieved; under the combined action of physical and chemical permeability increase, the air permeability of a coal seam and the gas extraction effect are remarkably improved.