This paper considers fusion of dimension-reduced estimates in a decentralized sensor network. The benefits of a decentralized sensor network include modularity, robustness and flexibility. Moreover, since preprocessed data is exchanged between the agents it allows for reduced communication. Nevertheless, in certain applications the communication load is required to be reduced even further. One way to decrease the communication load is to exchange dimension-reduced estimates instead of full estimates. Previous work on this topic assumes global availability of covariance matrices, an assumption which is not realistic in decentralized applications. Hence, in this paper we consider the problem of deriving dimension-reduced estimates using only local information. The proposed solution is based on an estimate of the information common to the network. This common information estimate is computed locally at each agent by fusion of all information that is either received or transmitted by that agent. It is shown how the common information estimate is utilized for fusion of dimension-reduced estimates using two well-known fusion methods: the Kalman fuser which is optimal under the assumption of uncorrelated estimates, and covariance intersection. One main theoretical result is that the common information estimate allows for a decorrelation procedure such that uncorrelated estimates can be maintained. This property is crucial to be able to use the Kalman fuser without double counting of information. A numerical comparison suggests that the performance degradation of using the common information estimate, compared to having local access to the actual covariance matrices computed by other agents, is relatively small.