An system, method, and method of encoding/decoding a multi-channel audio signal, including a decoding level generation unit producing decoding-level information that helps a bitstream including a number of audio channel signals and space information to be decoded into a number of audio channel signals, wherein the space information includes information about magnitude differences and/or similarities between channels, and an audio decoder decoding the bitstream according to the decoding-level information. Accordingly, even a single input bitstream can be decoded into a suitable number of channels depending on the type of a speaker configuration used. Scalable channel decoding can be achieved by partially decoding an input bitstream. In the scalable channel decoding, a decoder may set decoding levels and outputs audio channel signals according to the decoding levels, thereby reducing decoding complexity.