arXiv:2610.29214v1 Announce Type: new Abstract: We develop an interior penalty Nitsche finite element formulation for heterogeneous and anisotropic diffusion problems, which is derived from an interior-penalty stabilized Lagrange multiplier method. A distinctive feature of the derived method is that it simultaneously combines two popular stabilization strategies: (i) a boundary penalty mechanism similar to Nitsche's methods and (ii) an interior penalty mechanism as for Continuous Interior Penalty (CIP) methods. Furthermore, the normal component of the numerical flux is single-valued across the mesh skeleton and available in closed form. We establish the equivalence between the hybridized Lagrange multiplier formulation and its condensed Interior Penalty Nitsche (IPN) form, and we deliver the stability and convergence analysis of the latter. For sufficiently regular solutions, we establish energy-norm error estimates for the three symmetry variants. Under a piecewise elliptic regularity assumption on the adjoint problem, the $L^2$ estimate is optimal for the symmetric variant and exhibits a half-order loss for the incomplete and nonsymmetric variants; its constant may depend on the diffusion coefficients through the adjoint regularity constant. This single-valued numerical normal flux, available in closed form, provides a starting point for locally conservative $H(\mathrm{div})$-conforming flux reconstruction, left for future work. Numerical experiments validate the theoretical findings.