A subgrid model in the large‐eddy simulation of turbulent flows is derived from the statistical viewpoint. The subgrid‐scale (SGS) Reynolds stress playing a central role in the derivation is estimated from a shear‐turbulence theory which is based on the direct‐interaction formalism incorporated with the separation of scales of mean and fluctuating fields. A resulting subgrid model is written in terms of the grid‐scale (GS) velocity, the GS pressure, and the SGS turbulent energy. The Smagorinsky model used frequently in the large‐eddy simulation is derived under the special situation that production and dissipation terms are dominant in the transport equation for the SGS turbulent energy.