Following recent
developments in multilevel embedding methods,
we introduce a novel density matrix-based multilevel approach within
the framework of density functional theory (DFT). In this multilevel
DFT, the system is partitioned in an active and an inactive fragment,
and all interactions are retained between the two parts. The decomposition
of the total system is performed upon the density matrix. The orthogonality
between the two parts is maintained by solving the Kohn–Sham
equations in the MO basis for the active part only, while keeping
the inactive density matrix frozen. This results in the reduction
of computational cost. We outline the theory and implementation and
discuss the differences and similarities with state-of-the-art DFT
embedding methods. We present applications to aqueous solutions of
methyloxirane and glycidol.