In order to combat multipath fading in the wireless networks and increase the system capacity, the idea of spacetime coding devised for multiple antenna systems is applied to the two-hop non-regenerative (NR) relaying system. The proposed cooperative relaying system (CRS) is based on twohop protocol, in the 1 st hop the transmitter encodes original information into distributed linear dispersion codes (LDC) and in the 2 nd hop, the relaying nodes amplify the received signals and forward them to the receiver. Besides the capacity analysis of two-hop NR relaying system in the presence of LDC, we present some conditions based on maximum LDC capacity to optimize the proposed CRS performance. Theoretic analysis and numeric results show that the proposed CRS performance not only outperforms that of earlier proposed methods, but also obtains the maximum channel capacity.