A new efficient and accurate hybrid reliability method is proposed to estimate risk of an axially loaded single pile considering pile-soil interaction effect. Uncertainties associated with all the design variables are considered appropriately. It intelligently integrates the concepts of the response surface method, the finite difference method, the first-order reliability method, and an iterative linear interpolation scheme. The soil around the pile is represented by a series of springs. The system represents a realistic and efficient load-transfer mechanism. The dual system is then deterministically analysed using the finite difference method. Uncertainties associated with load conditions, material and sectional properties of the pile and soil properties are explicitly considered. The risks corresponding to both serviceability and strength limit states are estimated. With help of realistic examples, the applicability, accuracy and efficiency of the proposed algorithm in the safety assessment of axially loaded pile-soil system are demonstrated. The procedure is also verified using the Monte Carlo simulation technique.