I came across an alternative definition of reductive Lie algebra as follows:
$\mathfrak{g}$ is said to be reductive of all abelian ideals of it are contained in its center $Z(\mathfrak{g})$ and $Z(\mathfrak{g})\cap [\mathfrak{g},\mathfrak{g}]=0$.
My question is, does this definition coincide with the usual one with $Z(\mathfrak{g})=Rad(\mathfrak{g})$? In particular, how can one show that $\mathfrak{g}=Z(\mathfrak{g})\oplus \mathfrak{s}$ where the latter one is semisimple and in fact is indeed $[\mathfrak{g}, \mathfrak{g}]$? Thank you in advance!
First recall that a Lie algebra is semisimple if and only if it does not contain nonzero abelian ideals. This is because for non-semisimple Lie algebras the last nonzero term in the series of commutator subalgebras of its radical is an abelian ideal.
In your formulation, since all abelian ideals are contained in $\mathfrak{z}$ and $\mathfrak{z}\cap [\mathfrak{g}, \mathfrak{g}]=0$ we conclude that $[\mathfrak{g}, \mathfrak{g}]$ is semisimple.
Some authors call a Lie algebra $\mathfrak{g}$ reductive if $[\mathfrak{g}, \mathfrak{g}]$ is semisimple. This is equivalent to the other more common definition. To see this let $$\mathfrak{g}=\mathfrak{r}\rtimes\mathfrak{s}$$ be a Levi decomposition of $\mathfrak{g}$. Then $$[\mathfrak{g}, \mathfrak{g}]=[\mathfrak{g}, \mathfrak{r}]\rtimes \mathfrak{s},$$ so that semisimplicity of $[\mathfrak{g}, \mathfrak{g}]$ implies $[\mathfrak{g}, \mathfrak{r}]=0$, that is, the radical is central. Therefore $$\mathfrak{g}=\mathfrak{r}\oplus\mathfrak{s}.$$