SummaryThis paper is concerned with robust numerical treatment of an elliptic PDE with high‐contrast coefficients, for which classical finite‐element discretizations yield ill‐conditioned linear systems. This paper introduces a procedure by which the discrete system obtained from a linear finite element discretization of the given continuum problem is converted into an equivalent linear system of the saddle‐point type. Three preconditioned iterative procedures—preconditioned Uzawa, preconditioned Lanczos, and preconditioned conjugate gradient for the square of the matrix—are discussed for a special type of the application, namely, highly conducting particles distributed in the domain. Robust preconditioners for solving the derived saddle‐point problem are proposed and investigated. Robustness with respect to the contrast parameter and the discretization scale is also justified. Numerical examples support theoretical results and demonstrate independence of the number of iterations of the proposed iterative schemes on the contrast in parameters of the problem and the mesh size.