We reconsider neutrino decay as an explanation for atmospheric neutrino observations. We show that if the mass-difference relevant to the two mixed states u_mu and u_tau is very small (< 10^{-4} eV^2), then a very good fit to the observations can be obtained with decay of a component of u_mu to a sterile neutrino and a Majoron. We discuss how the K2K and MINOS long-baseline experiments can distinguish the decay and oscillation scenarios.
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