A system and machine-implemented method are described for performing precoding interpolation in a DIDO system which employs orthogonal frequency-division multiplexing (OFDM) and DIDO precoding to communicate with a plurality of distributed-input-distributed-output (DIDO) clients. For example, a system according to one embodiment of the invention comprises: selecting a first subset of ODFM tones to determine a first subset of precoding weights; deriving a second subset of precoding weights for a second subset of ODFM tones by interpolating between the first subset of precoding weights; and using a combination of the first subset of precoding weights and the second subset of precoding weights to precode a data stream prior to transmitting the data stream to a DIDO client.