In this work, we focus on compensation of inter-channel nonlinearity in optical wavelength division multiplexed (WDM) systems. We consider pre-coding with a high-rate forward error correction (FEC) code and a low-complexity and low-latency decoding and equalization scheme at the receiver. The 2 × 2 multiple-input multiple-output (MIMO) recursive least square (RLS) equalizer is applied to reduce the inter-symbol interference (ISI) caused by the inter-channel nonlinearity, while the decoder improves the quality of the data feedback. Decisions based on feedback reliability have been implemented to prevent error propagation. We demonstrate that our system can readily utilize the inner FEC part of a mainstream concatenated optical FEC designs such as the 400ZR standard FEC. We evaluate the proposed algorithm for the dual-polarization 16QAM and 256QAM optical links. Based on our simulation results, the Q-factor has been increased by 0.36 and 0.67 dB for the 16QAM and 256QAM, respectively. The optimum launch power has been increased by 0.4 dB for both cases.