It depends. Scenario One: If Deadpool were to be cut in half horizontally, the half containing the brain may regenerate, due to it controlling his nervous system (including regeneration, I presume). read more
During the Dark Reign storyline Deadpool has a cross over with the Thunderbolts which ends with his head being cut off. Everyone is left to believe that this act would leave him dead as he would not be able to regenerate from this. read more