Aiming to observe cosmic gamma rays in the 10 - 1000 TeV energy region, we propose a 10000 m^2 underground water-Cherenkov muon-detector (MD) array that operates in conjunction with the Tibet air-shower (AS) array. Significant improvement is expected in the sensitivity of the Tibet AS array towards celestial gamma-ray signals above 10 TeV by utilizing the fact that gamma-ray-induced air showers contain far fewer muons compared with cosmic-ray-induced ones. We carried out detailed Monte Carlo simulations to assess the attainable sensitivity of the Tibet AS+MD array towards celestial TeV gamma-ray signals. Based on the simulation results, the Tibet AS+MD array will be able to reject 99.99% of background events at 100 TeV, with 83% of gamma-ray events remaining. The sensitivity of the Tibet AS+MD array will be ~20 times better than that of the present Tibet AS array around 20 - 100 TeV. The Tibet AS+MD array will measure the directions of the celestial TeV gamma-ray sources and the cutoffs of their energy spectra. Furthermore, the Tibet AS+MD array, along with imaging atmospheric Cherenkov telescopes as well as the Fermi Gamma-ray Space Telescope and X-ray satellites such as Suzaku and MAXI, will make multiwavelength observations and conduct morphological studies on sources in the quest for evidence of the hadronic nature of the cosmic-ray acceleration mechanism.
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