This paper presents a novel hierarchical nuclei segmentation algorithm for isolated and overlapping cervical cells based on a narrow band level set implementation. Our method applies a new multiscale analysis algorithm to estimate the number of clusters in each image region containing cells, which turns into the input to a narrow band level set algorithm. We assess the nuclei segmentation results on three public cervical cell image databases. Overall, our segmentation method outperformed six state-of-the-art methods concerning the number of correctly segmented nuclei and the Dice coefficient reached values equal to or higher than 0.90. We also carried out classification experiments using features extracted from our segmentation results and the proposed pipeline achieved the highest average accuracy values equal to 0.89 and 0.77 for two-class and three-class problems, respectively. These results demonstrated the suitability of the proposed segmentation algorithm to integrate decision support systems for cervical cell screening.