In the present work, a methodology for setting up virgin stress conditions in discrete element models is proposed. The developed algorithm is applicable to discrete or coupled discrete/continuum modeling of underground excavation employing the discrete element method (DEM). Since the DEM works with contact forces rather than stresses there is a need for the conversion of pre-excavation stresses to contact forces for the DEM model. Different possibilities of setting up virgin stress conditions in the DEM model are reviewed and critically assessed. Finally, a new method to obtain a discrete element model with contact forces equivalent to given macroscopic virgin stresses is proposed. The test examples presented show that good results may be obtained regardless of the shape of the DEM domain.