We propose and study an iterative substructuring method for an h-p Nitsche-type discretization, following the original approach introduced in Bramble et al. Math. Comp. 47(175):103–134, (1986) for conforming methods. We prove quasi-optimality with respect to the mesh size and the polynomial degree for the proposed preconditioner. Numerical experiments assess the performance of the preconditioner and verify the theory. © 2014, Springer-Verlag Italia.