Hybrid electric vehicles are powered by an electric system and an internal combustion engine. The components of a hybrid electric vehicle need to be coordinated in an optimal manner to deliver the desired performance. This paper presents an approach based on direct method for optimal power management in hybrid electric vehicles with inequality constraints. The approach consists of reducing the optimal control problem to a set of algebraic equations by approximating the state variable which is the energy of electric storage, and the control variable which is the power of fuel consumption. This approximation uses orthogonal functions with unknown coefficients. In addition, the inequality constraints are converted to equal constraints. The advantage of the developed method is that its computational complexity is less than that of dynamic and non-linear programming approaches. Also, to use dynamic or non-linear programming, the problem should be discretized resulting in the loss of optimization accuracy. The propsed method, on the other hand, does not require the discretization of the problem producing more accurate results. An example is solved to demonstrate the accuracy of the proposed approach. The results of Haar wavelets, and Chebyshev and Legendre polynomials are presented and discussed.