A new direct multi level matrix converter has been proposed in this paper. In comparison to the conventional matrix converter the proposed converter makes available the input phase voltages in addition to the line voltages at the converter output. This increased level comes at the cost of three additional bi-directional switches connecting output terminals to the filter capacitor neutral. Direct space vector modulation scheme, for synthesizing the required input current and the output voltage while balancing the input capacitor voltage, is presented. This converter offers reduced THD and lowered switching stress compared to conventional matrix converter. The effectiveness of the proposed converter has been verified by means of simulation and hardware experiments.