Aiming at naval cooperative engagement problem in wide sea battleground, a decentralized fusion architecture based on geodetic coordinate system for naval ships was presented. To increase the performance of maneuvering target tracking and fusion two efforts are made. On the one hand, more appropriate target motion model and observation model based on geodetic coordinate system are provided, on the other hand, by combining the square root-unscented Kalman filter methodology and the information filter framework, a decentralized fusion algorithm denoted as DSR-UKF is developed. The proposed algorithm can unify tracking and fusion algorithms in short range, intermediate range and long-distance circumstances, and simplifies the system information flow for target calculation. The simulation results show the efficiency and robustness of the proposed algorithm with high precision