Mitred Squares (or Domino Knitting or Modular Knitting) is a great patchwork knitting technique.
Yes, it's knitted in squares but there's only two seams to sew to make this bag. Each square is picked up from those around it.

The size of the bag depends on the yarn you use. So if you want a small handbag (9x8x2in) use 4ply yarn. A bigger handbag (12x10x2.5in) uses DK yarn. A large tote bag (17x15x3.5in) uses chunky yarn.

Stitches used:
Cast on, knit, purl, picking up stitches (diagram), decreasing using sl 1-k2tog-psso (diagram).

Materials
Any yarn you choose - samples are worked in cream 4ply cotton, a Magic Ball Yarn made up of odds and ends of blue stash yarns, and natural shaded Noro chunky-weight wool.
Needles.
Lining fabric and handles - cream bag has ready-made handles, blue bag is lined with recycled jeans with waistbands for the handles. The brown bag is finished as a drawstring tote with an old belt for the strap.

Pattern
Full written instructions with stitch diagrams and layout diagram of bag. Instructions for linings and handles. Yarn amounts and needle sizes for 4ply up to super chunky yarns.
Sent as a PDF to your email address within 48 hours of PayPal payment.
Open the file with Adobe Reader - download it for free from www.adobe.com.
File size - 500KB