This paper presents a joint optimization method of a two-step conditional random field (CRF) model for machine transliteration and a fast decoding algorithm for the proposed method. Our method lies in the category of direct orthographical mapping (DOM) between two languages without using any intermediate phonemic mapping. In the two-step CRF model, the first CRF segments an input word into chunks and the second one converts each chunk into one unit in the target language. In this paper, we propose a method to jointly optimize the two-step CRFs and also a fast algorithm to realize it. .