In this paper, we address two crucial challenges in the design of cell-free (CF) systems: degradation in the performance of CF systems by imperfect channel state information at the transmitter (CSIT) and high computational/signaling loads arising from the increasing number of distributed antennas and parameters to be exchanged. To mitigate the effects of imperfect CSIT, we employ rate-splitting (RS) multiple-access, which separates the messages into common and private streams. Unlike prior works, we present a clustered CF multi-user multiple-antenna framework with RS, which groups the transmit antennas in several clusters to reduce the computational and signaling loads. The proposed RS-CF system employs one common stream per cluster to exploit the network diversity. Furthermore, we propose new cluster-based linear precoders for this framework. We then devise a power allocation strategy for the common and private streams within clusters and derive closed-form expressions for the sum-rate performance of the proposed cluster-based RS-CF system. Numerical results show that the proposed clustered RS-CF system and algorithms outperform existing approaches. % in terms of the sum-rate.
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