We create a novel Physarum Steiner algorithm designed to solve the Euclidean Steiner tree problem. Physarum is a unicellular slime mold with the ability to form networks and fuse with other Physarum organisms. We use the simplicity and fusion of Physarum to create large swarms which independently operate to solve the Steiner problem. The Physarum Steiner tree algorithm then utilizes a swarm of Physarum organisms which gradually find terminals and fuse with each other, sharing intelligence. The algorithm is also highly capable of solving the obstacle avoidance Steiner tree problem and is a strong alternative to the current leading algorithm. The algorithm is of particular interest due to its novel approach, rectilinear properties, and ability to run on varying shapes and topological surfaces.