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In this paper, we have decomposed an AG-groupoid. Let S be an AG-groupoid with left identity and a relation γ be defined on S as: aγb if and only if there exist positive integers m and n such that b ^m ∈ (Sa)S and a ⁿ ∈ (Sb)S for all a and b in S. We have proved that S/γ is a maximal separative semilattice homomorphic image of S. Every AG-groupoid S is uniquely expressible as a semilattice Y of archimedean AG-groupoids S _α (α ∈ Y). The semilattice Y is isomorphic to S/γ and the S _α (α ∈ Y) are the equivalence classes of S mod γ.