An optimal design of a geodetic network can fulfill the requested precision and reliability of the network, and decrease the expenses of its execution by removing unnecessary observations. The role of an optimal design is highlighted in deformation monitoring network due to the repeatability of these networks. The core design problem is how to define precision and reliability criteria. This paper proposes a solution, where the precision criterion is defined based on the precision of deformation parameters, i. e. precision of strain and differential rotations. A strain analysis can be performed to obtain some information about the possible deformation of a deformable object. In this study, we split an area into a number of three-dimensional finite elements with the help of the Delaunay triangulation and performed the strain analysis on each element. According to the obtained precision of deformation parameters in each element, the precision criterion of displacement detection at each network point is then determined. The developed criterion is implemented to optimize the observations from the Global Positioning System (GPS) in Skåne monitoring network in Sweden. The network was established in 1989 and straddled the Tornquist zone, which is one of the most active faults in southern Sweden. The numerical results show that 17 out of all 21 possible GPS baseline observations are sufficient to detect minimum 3 mm displacement at each network point. © 2018 Walter de Gruyter GmbH, Berlin/Boston.