Holographic renormalization for irrelevant operators and multi-trace counterterms

We investigate the structure of holographic renormalization in the presence of sources for irrelevant operators. By working perturbatively in the sources we avoid issues related to the non-renormalizability of the dual field theory. We find new classes of divergences which appear to be non-local on the gravity side. However in all cases a systematic renormalization procedure exists involving either standard local counterterms or new counterterms which may be interpreted as multi-trace counterterms in the field theory. The multi-trace counterterms reflect a more intricate relation between sources and the asymptotics of bulk fields.