  The variational local moment approach (V-LMA), being a modification of the
method due to Logan {\it et al}., is presented here. The existence of local
moments is taken from the outset and their values are determined through
variational principle by minimizing the corresponding ground state energy. Our
variational procedure allows us to treat both fermi- and non-fermi liquid
systems with many orbitals as well as insulators without any additional
assumptions. It is proved by an explicit construction of the corresponding Ward
functional that the V-LMA belongs to the class of conserving approximations. As
an illustration, the V-LMA is used to solve the multi-orbital single impurity
Anderson model. The method is also applied to solve the dynamical mean-field
equations for the multi-orbital Hubbard model. In particular, the Mott-Hubbard
metal--insulator transition is addressed within this approach.
