The perturbative treatment of quantum field theory is formulated within the framework of algebraic quantum field theory. We show that the algebra of interacting fields is additive, i.e. fully determined by its subalgebras associated to arbitrary small subregions of Minkowski space. We also give an algebraic formulation of the loop expansion by introducing a projective system ${\cal A}^{(n)}$ of observables ``up to $n$ loops'' where ${\cal A}^{(0)}$ is the Poisson algebra of the classical field theory. Finally we give a local algebraic formulation for two cases of the quantum action principle and compare it with the usual formulation in terms of Green's functions.

29 pages