In this paper a new control method of electric power steering (EPS) system with variable gear transfer system (VGTS) is proposed. The basic idea of controller design is to apply decoupling control to this system and to separately design controllers for two decoupled systems. The decoupled systems are torque control system and gear ratio control system. In angle control system the PID control is used for the desired gear ratio. In torque control system the PID control is used for the desired assist torque designed so as to achieve good steering feel. In order to evaluate steering feel the Lissajous curve between the steering torque and steering angle is used. The steering feel of the proposed controller is verified by numerical simulation tests