In this paper we study the problem of schema design and normalization in XML databases model. We show that, like relational databases, XML documents may contain redundant information, and this redundancy may cause update anomalies. Furthermore, such problems are caused by certain functional dependencies among paths in the document. Based on our research works, in which we presented the functional dependencies and normal forms of XML Schema, we present the decomposition algorithm for converting any XML Schema into normalized one, that satisfies X-BCNF.