In this paper, a near optimal decentralized observer-controller design method is proposed for ramp metering systems based on SDRE (State Dependent Riccati Equation) approach. The optimal nonlinear observer gain is parameterized in terms of the solution matrix of an SDRE. This paper gives a simple algorithm to compute the near optimal observer gain. The optimal control design problem is also considered. Finally, numerical simulation results are given to illuminate the effectiveness and practicality of the proposed design method.