Our goal is to solve nonlinear contact problems. We consider bodies in contact with each other divided into subdomains, which in turn are unions of elements. The contact surface between the bodies is unknown a priori, and we have a nonpenetration condition between the bodies, which is essentially an inequality constraint. We choose to use an active set method to solve such problems, which has both outer iterations in which the active set is updated, and inner iterations in which a (linear) minimization problem is solved on the current active face. In the first part of this dissertation, we review the basics of domain decomposition methods. In the second part, we consider how to solve the inner minimization problems. Using an approach based purely on FETI algorithms with only Lagrange multi- pliers as unknowns, as has been developed by the engineering community, does not lead to a scalable algorithm with respect to the number of subdomains in each body. We prove that such an algorithm has a condition number estimate which depends linearly on the number of subdomains across a bodyï¼› numerical experiments suggest that this is the best possible bound. We also consider a new method based on the saddle point formulation of the FETI methods with both displacement vectors and Lagrange multipliers as unknowns. The resulting system is solved with a block-diagonal preconditioner which combines the one-level FETI and the BDDC methods. This approach allows the use of inexact solvers. We show that this new method is scalable with respect to the number of subdomains, and that its convergence rate depends only logarithmically on the number of degrees of freedom of the subdomains and bodies. In the last part of this dissertation, a model contact problem is solved by two approaches. The first one is a nonlinear algorithm which combines an active set method and the new method of Chapter 4. We also present a novel way of finding an initial active set. The second one uses the SMALBE algorithm, developed by Dostal et al. We show that the former approach has advantages over the latter.