  We employ a combination of the \emph{ab initio} band structure methods and
dynamical mean-field theory to determine the electronic structure and phase
stability of paramagnetic FeO at high pressure and temperature. Our results
reveal a high-spin to low-spin transition within the B1 crystal structure of
FeO upon compression of the lattice volume above 73~GPa. The spin-state
transition is accompanied by an orbital-selective Mott metal-insulator
transition (MIT). The lattice volume is found to collapse by about 8.5~\% at
the MIT, implying a complex interplay between electronic and lattice degrees of
freedom. Our results for the electronic structure and lattice properties are in
overall good agreement with experimental data.
