An iterative algorithm that is based on the idea of two homotopy paths is proposed for output feedback decentralised H control design. The approach follows a bilinear matrix inequality (BMI) formulation of the decentralised control problem. Along one homotopy path the BMI problem, which is non-convex, is locally linearised and solved. Along the second homotopy path the controller is deformed at each step so that in the end it attains a decentralised structure. The proposed computational algorithm can also be applied to obtain reduced-order decentralised controllers. Numerical examples are used to demonstrate the efficacy of the proposed algorithm.