The present invention relates to a method for reducing an echo in a microphone signal generated by a microphone, comprising echo compensating the microphone signal by subtracting an estimated echo signal from the microphone signal to generate an echo compensated signal, detecting a speech activity of a local speaker on the basis of the microphone signal and the estimated echo signal and suppressing a residual echo in the echo compensated signal on the basis of the detected speech activity to obtain an output signal. The invention further relates to a system for processing a microphone signal generated by a microphone, comprising echo compensation filtering means configured to receive and echo compensate the microphone signal to output an echo compensated signal based on the received microphone signal, a speech activity detection means configured to detect speech activity of a local speaker by receiving and analyzing the echo compensated signal and to output a detection signal and a residual echo suppressing means configured to receive the detection signal and to receive and filter the echo compensated signal on the basis of the detection signal to output an output signal.