In this paper we begin on a new lattice formulation of the non-linear change
of variables called the Cho--Faddeev--Niemi decomposition in SU(2) Yang-Mills
theory. This is a compact lattice formulation improving the non-compact lattice
formulation proposed in our previous paper. Based on this formulation, we
propose a new gauge-invariant definition of the magnetic monopole current which
guarantees the magnetic charge quantization and reproduces the conventional
magnetic-current density obtained in the Abelian projection based on the
DeGrand--Toussaint method. Finally, we demonstrate the magnetic monopole
dominance in the string tension in SU(2) Yang-Mills theory on a lattice. Our
formulation enables one to reproduce in the gauge-invariant way remarkable
results obtained so far only in the Maximally Abelian gauge.Comment: 14 pages, v2: minor corrections; v3: explanations added and improve