In a method and system for decoding a differential M-ary phase or quadrature amplitude modulated signal, the incoming signal is decoded according to a plurality of different decoding rules, wherein said plurality of decoding rules correspond to different values of a resulting frequency difference or mismatch between a signal frequency and a local oscillator reference frequency. The invention allows to increase a tolerance window for the maximal allowable frequency offset, and thus helps to speed up an initial locking process or to allow for equipment which has a lower tuning granularity.