In this paper, the source‐precoder, multiple‐relay amplifying matrices, and destination‐equalizer joint optimization is investigated in distributed MIMO amplify‐and‐forward multiple‐relay networks with direct source–destination transmission in correlated fading channels. With the use of taking both the direct link and spatial correlation between antenna elements into account, the cooperative transceiver joint design is developed based on the minimum mean‐squared error criterion under individual power constraints at the source and multiple‐relay nodes. Simulation results demonstrate that the cooperative transceiver joint design architecture for an amplify‐and‐forward MIMO multiple‐relay system outperforms substantially the noncooperative transceiver design techniques on the BER performance under the spatial‐correlation channels.Copyright © 2012 John Wiley & Sons, Ltd.