An embedded formulation for the simulation of immiscible multi-fluid problems is proposed. The method is particularly designed for handling gas-liquid systems. Gas and liquid are modeled using the Eulerian and the Lagrangian formulation, respectively. The Lagrangian domain (liquid) moves on top of the fixed Eulerian mesh. The location of the material interface is exactly defined by the position of the boundary mesh of the Lagrangian domain. The individual fluid problems are solved in a partitioned fashion and are coupled using a Dirichlet-Neumann algorithm. Representation of the pressure discontinuity across the interface does not require any additional techniques being an intrinsic feature of the method. The proposed formulation is validated, and its potential applications are shown.