Recognizing Underlying Sparsity in Optimization by Sunyoung Kim, Masakazu Kojima and Philippe L. Toint Report 06/02 May 2006 Exploiting sparsity is essential to improve the efficiency of solving large optimization problems. We present a method for recognizing the underlying sparsity structure of a nonlinear partially separable problem, and show how the sparsity of the Hessian matrices of the problem's functions can be improved by performing a nonsingular linear transformation in the space corresponding to the vector of variables. A combinatorial optimization problem is then formulated to increase the number of zeros of the Hessian matrices in the resulting transformed space, and a heuristic greedy algorithm is applied to this formulation. The resulting method can thus be viewed as a preprocessor for converting a problem with hidden sparsity into one in which sparsity is explicit. When it is combined with the sparse semidefinite programming (SDP) relaxation by Waki {\it et al.} for polynomial optimization problems (POPs), the proposed method is shown to extend the performance and applicability of this relaxation technique. Preliminary numerical results are presented to illustrate this claim. Keywords: nonlinear optimization, problem structure, partial separability, sparsity, SDP relaxation, polynomial optimization