The atomic dipole squeezing effect in the system of two identical two-level atoms in the Bell state interacting with the two-mode entangled coherent state field in Kerr medium are investigated by means of solving the Schrdinger equation and numerical calculations. The effects on the atomic dipole squeezing effect produced by the atomic initial state, mean photon number of light field, the degree of the entanglement of the entangled coherent field, the coupling strength of the Kerr medium with the light field and the coupling strength of dipole-dipole interaction between atoms are discussed. The results show that the dipole squeezing effect does not appear for the Bell state |β11>, while there can be dipole squeezing effect under certain conditions for the Bell states |β00> or |β01> or |β10>. In the latter case, the dipole squeezing effect depends on the coupling strength of the Kerr medium with the light field, the mean photon number and the degree of entanglement of the two-mode entangled coherent field.