Eliminating the false intersection (deghosting) is a difficult problem in a passive cross location system. Using a decentralized decision fusion topology, a new deghosting algorithm derived from hypothesis testing theory is developed. It uses the difference between ghosts and true targets in the statistical error, which occurs between their projection angles on a deghosting sensor and is measured from a deghosting sensor, and constructs a corresponding test statistic. Under the Gaussian assumption, ghosts and true targets are decided and discriminated by Chi-square distribution. Simulation results show the feasibility of the algorithm.