A method of echo cancellation in a full-duplex data communication system with discrete multitone modulation, comprised of an initial step of initializing a set of frequency-domain echo parameters and a set of corresponding time-domain echo parameters, and further including the repeating steps of block multiplying a frequency-domain transmit block of a transmitted signal by the set of frequency-domain echo parameters to produce a frequency-domain echo, converting the frequency-domain transmit block to a time-domain transmit block, subtracting the end of the previous time-domain transmit block from the end of the current time-domain transmit block, performing a convolution of the adjusted time-domain transmit block and the time-domain echo parameters to produce a time-domain echo, subtracting the time-domain echo from a time-domain receive block of a received signal, converting the resulting signal to the frequency-domain to produce a frequency-domain receive block, subtracting the frequency-domain echo from the frequency-domain receive block to produce an echo-free receive block, updating the frequency-domain echo parameters by comparing the echo-free receive block to the frequency-domain transmit block, infrequently updating the time-domain echo parameters by converting the frequency-domain echo parameters to the time-domain, and repeating the repeating steps for each block of the received signal.