We introduce the multiset partition algebra, MP r,k (x), that has bases elements indexed by multiset partitions, where x is an indeterminate and r and k are non-negative integers. This algebra can be realized as a diagram algebra that generalizes the partition algebra. When x is an integer greater or equal to 2r, we show that MP r,k (x) is isomorphic to a centralizer algebra of the symmetric group, Sn, acting on the polynomial ring on the variables xij , 1 ≤ i ≤ n and 1 ≤ j ≤ k. We describe the representations of MP r,k (x), branching rule and restriction of its representations in the case that x is an integer greater or equal to 2r.