new domain/boundary decomposition method is suggested to perform efficient finite element analyses of contact problems. A penalty method is used for connecting an interface or contact interfaces with neighboring subdomains that satisfy continuity conditions. As a result, the derived effective stiffness matrices are always positive definite, and computational efficiency can be improved to a considerable degree. Moreover, any complex-shaped domain can be divided into independently modeled subdomains without considering the conformity of meshes along the interface. Using a computer code based on the present method, these advantageous features are confirmed through a set of numerical examples.??