A fundamental theorem of Wilson states that, for every graph $F$, every sufficiently large $F$-divisible clique has an $F$-decomposition. Here a graph $G$ is $F$-divisible if $e(F)$ divides $e(G)$ and the greatest common divisor of the degrees of $F$ divides the greatest common divisor of the degrees of $G$, and $G$ has an $F$-decomposition if the edges of $G$ can be covered by edge-disjoint copies of $F$. We extend this result to graphs $G$ which are allowed to be far from complete. In particular, together with a result of Dross, our results imply that every sufficiently large $K_3$-divisible graph of minimum degree at least $9n/10+o(n)$ has a $K_3$-decomposition. This significantly improves previous results towards the long-standing conjecture of Nash-Williams that every sufficiently large $K_3$-divisible graph with minimum degree at least $3n/4$ has a $K_3$-decomposition. We also obtain the asymptotically correct minimum degree thresholds of $2n/3 +o(n)$ for the existence of a $C_4$-decomposition, and of $n/2+o(n)$ for the existence of a $C_{2ell}$-decomposition, where $ellge 3$. Our main contribution is a general `iterative absorption method which turns an approximate or fractional decomposition into an exact one. In particular, our results imply that in order to prove an asymptotic version of Nash-Williams conjecture, it suffices to show that every $K_3$-divisible graph with minimum degree at least $3n/4+o(n)$ has an approximate $K_3$-decomposition,
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