In the finite element analysis of reinforced concrete structures, discrete representation of the steel reinforcing bars is considered advantageous over smeared representation because of the more realistic modelling of their bond-slip behaviour. However, there is up to now limited research on how to simulate the dowel action of discrete reinforcing bars, which is an important component of shear transfer in cracked concrete structures. Herein, a numerical model for the dowel action of discrete reinforcing bars is developed. It features derivation of the dowel stiffness based on the beam-on-elastic-foundation theory and direct assemblage of the dowel stiffness matrix into the stiffness matrices of adjoining concrete elements. The dowel action model is incorporated in a nonlinear finite element program based on secant stiffness formulation and application to deep beams tested by others demonstrates that the incorporation of dowel action can improve the accuracy of the finite element analysis.