In this paper we propose the rational computational strategy for the contact problems included the effect of plastic large deformations in order to analyse an axisymmetric progressive plastic buckling of cylindrical shell under an axial compression. The major contents of this study are summarized as follows; 1) the description of the procedure to introduce the constrained conditions forced on the contact surfaces to the incremental virtual work principle through LAGRANGE's multipliers. 2) the explanation of the logic that determine the contact state at each deformation stage and supply the informations for following step. 3) the introduction of the triple iterative scheme of computation which would combine two nonlinear terms, namely the effective plastic loads and the frictional slide loads, and the factor controlling the amplitude of displacement increments at the stage when contact condition change. In connection with this formulation we use the standard FE technique. The result of computation in the case of Al-Alloy tube confirms us that the present strategy is feasible to examine the collapse process and is applicable to certain class of contact problems.