We present a domain decomposition algorithm for solving large sparse linear systems of equations arising from queuing networks. Such techniques are attractive since the problems in subdomains can be solved independently by parallel processors. Many of the methods proposed so far use some form of the preconditioned conjugate gradient method to deal with one large interface problem between subdomains. However, in this paper, we propose a "nested" domain decomposition method where the subsystems governing the interfaces are small enough so that they are easily solvable by direct methods on machines with many parallel processors. Convergence of the algorithms is also shown.lso shown.