The Algebraic Recursive Multilevel Solver is a multilevel technique which has attributes of both the ILU class of preconditioners and of the multilevel class of precondontioners. It is algebraic and general purpose in the same way that ILUT (for example) is. The main idea is to recursively form the Schur complement system associated with a set of "coarse points" which are determined algebraically. Since the Schur complement is typically sparse, the same process of reduction can be applied recursively until a last level is reached which is factored by a standard ILU.