A model Hamiltonian which includes one localized-type and one extended-type orbitals has been constructed for a more realistic description of magnetic impurities in nonmagnetic metals. We have used a variational method to study the ground state of this Hamiltonian. Due to the Hund's rule type coupling, under favorable condition the extended-and the localized-type orbitals can be both singly occupied to form a triplet state which contributes significantly to the local moment. We found a continuous change of local moments between the exact solutions at both the atomic and the band limits. A new mechanism has been discovered which may produce a ferromagnetic polarization cloud around the local moment. If so, this may provide an answer for the giant-moments formation.