A peak-to-average ratio (PAR) of a signal is reduced by clipping the signal at a threshold level and replacing desired frequency tones of the clipped signal with set of frequency tones of the signal. In one embodiment, the PAR of a signal is reduced by adding a peak cancellation signal to the received signal. The peak cancellation signal is generated by clipping the received signal at a threshold level and generating a difference signal by subtracting the received signal from the clipped signal. The peak cancellation signal thus generated is scaled by a scaling factor and added to the received signal to reduce the PAR of the received signal. The scaling factor is adjusted to maintain the desired quality of the received signal. In one embodiment, the PAR of an orthogonal frequency division multiplexed (OFDM) signal may be reduced.