This paper proposes a divide-and-conquer strategy for designing brain machine interfaces. A nonlinear combination of competitively trained local linear models (experts) is used to identify the mapping from neuronal activity in cortical areas associated with arm movement to the hand position of a primate. The proposed architecture and the training algorithm are described in detail and numerical performance comparisons with alternative linear and nonlinear modeling approaches, including time-delay neural networks and recursive multilayer perceptrons, are presented. This new strategy allows training the local linear models using normalized LMS and using a relatively smaller nonlinear network to efficiently combine the predictions of the linear experts. This leads to savings in computational requirements, while the performance is still similar to a large fully nonlinear network.