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This paper reports a new delay subspace decomposition (DSD) algorithm. Instead of using the canonical zero-delay correlation matrix, the new DSD algorithm introduces a delay into the correlation matrix of the subspace decomposition to suppress noises in the data. The algorithm is applied to functional magnetic resonance imaging (fMRI) to detect the regions of focal activities in the brain. The efficiency is evaluated by comparing with independent component analysis and principal component analysis method of fMRI. [ABSTRACT FROM AUTHOR]