This article extends the main results of [10] to the case of a twisted groupoid. More precisely, it gives a decomposition of the C*-algebra of a twisted locally compact groupoid with Haar system in presence of a normal subgroupoid. When the normal subgroupoid and the twist over it are abelian, one obtains another twisted groupoid C*-algebra. This is applied to C*-algebraic deformation quantization and to multiplier representations of locally compact abelian groups.