A system for creating a comfort noise signal, said system includes a clipping circuit, a comfort noise generator, and a switch. The clipping circuit receives a near-end signal, a far-end signal and a residual signal. The clipping circuit determines the power of the far-end signal, the power of the near-end signal and the power of the residual signal. The clipping circuit determines the ratio of the power of the near-end signal to the residual signal and whether the ratio is less than a predetermined threshold. A comfort noise determination block is coupled to the residual signal and selectively forms a comfort noise signal. A switch is coupled to the comfort noise determination block and the clipping circuit. The switch is activated to transmit the comfort noise signal whenever the ratio of the power of the near-end signal to the residual signal is less than a predetermined threshold.