Grid-connected voltage source converters (GC-VSCs) are used for interfacing the distributed power generation system (DPGS) to the utility grid. Performance of the current loop is a critical issue for these GC-VSCs. Recently, reduced order generalized integrator (ROGI)-based current controller is proposed, such that AC reference signal of positive or negative sequences can be separately tracked without steady-state error, which has the advantage of less computational burden. However, the cross-coupling within the ROGI-based current controller would deteriorate the transient response of the current loop. In this paper, a ROGI-based decoupled current controller is proposed to eliminate the coupling between α-axis and β-axis. Thus, the faster dynamic response performance can be achieved while maintaining the merits of ROGI-based current controller. An optimal gain parameter design method for the proposed current controller is presented to improve the stability and dynamic response speed of current loop. Simulation and experiments were performed in MATLAB/Simulink and TMS320C28346 DSP-based laboratory prototype respectively, which validated the proposed theoretical approach.