In this paper, a threshold‐based selection relaying scheme that employs space‐time coding (STC) strategy is considered in a decode and forward (DF) cooperative network with multiple‐input–multiple‐output relays. One of the serious imperfections affecting these systems is error propagation on the source‐relay link, which culminates in intersymbol interference (ISI). Two scenarios are studied. In the first scenario, a new beamforming method is proposed for removing ISI between symbols of distributed space‐time coding scheme caused by erroneous detection of symbols at relays. It is demonstrated that this system is more power efficient in comparison to other systems without beamforming. In the second scenario, a new central STC that we nominate its orthogonal‐STC generator is proposed for multiple‐input–multiple‐output relays. The proposed new transmission scheme, in this case, removes ISI between symbols, which significantly mitigates the adverse effects of error propagation in DF relay networks. A closed‐form expression for end‐to‐end bit error rate of the system is derived for both scenarios. The asymptotic behavior analysis of the system shows that the threshold‐based selection relaying scheme in the second scenario, which uses a simple maximal ratio combining, by employing proper thresholds derived in the paper, achieves full diversity order 2M + 1 in the DF relay network with M relays. Numerical results show an excellent agreement between analytical and simulation results. There is 4 dB power saving at bit error rate of 10−4 for the second scenario compared with the first one and it outperforms other existing works.