The present disclosure relates to a pre-5th-Generation (5G) or 5G communication system to be provided for supporting higher data rates Beyond 4th-Generation (4G) communication system such as Long Term Evolution (LTE). The present disclosure provides methods and systems for reducing fronthaul bandwidth. Embodiments herein relate to the field of wireless networks and more particularly to reducing fronthaul bandwidth during a transfer of data between at least one radio node and at least one centralized node in a wireless network. A method disclosed herein includes determining parameters specific to at least one User Equipment (UE) using a machine learning method. The method further includes transferring data between the at least one radio node and the at least one centralized node over a fronthaul link by compressing the data using the parameters that are determined using the machine learning method. The method further includes decompressing, by at least one of the at least one radio node and the at least one centralized node, the compressed data using the parameters that are determined using the machine learning method.