A wireless communication unit includes a transmitter for processing a baseband transmit signal to produce a first radio frequency signal. A receiver is arranged to convert a second radio frequency signal to a baseband receive signal, where the receiver has a summation module arranged to add a cancellation signal to the baseband receive signal. A selectivity element is arranged to couple the transmitter and the receiver to an antenna, where a reduced portion of the first radio frequency signal is introduced into the second radio frequency signal thereby creating a second order inter-modulation distortion component in the baseband receive signal. An adaptive estimator module has a filter for filtering the baseband receive signal to remove dc offsets associated with the second order inter-modulation distortion component and generate the cancellation signal based on the baseband transmit signal and the filtered baseband receive signal for inputting to the summation module.