In this paper, a die shape optimization method for reduction of stress in aluminum rod in cold extrusion process is presented by using the reduced basis technique coupled by finite element and design of experiments methods. The primary objective of the proposed method is to reduce the enormous number of design variables required to define the initial die angle. The reduced basis technique is a weighted combination of several basis angles. The purpose of the method is to find the best combination using the weights for each angle as the design variables. A multi-level design process is advanced to find suitable basis angle at each level that can be used in the reduced foundation technique. Each level is treated as a separated optimization problem until the required target is achieved. The experimental design of Taguchi method is used to build the approximation model and to perform optimization. This method is demonstrated on the die angle optimization of cold extrusion.