Embodiments are provided for a cooperative cross-tier precoding (CTP) and intra-tier precoding (ITP) scheme for two-tier networks. The cooperative precoding scheme allows exploitation of extra transmit dimensions at the second-tier network, thereby increasing the achievable throughput at the second-tier network. The embodiments allow significant increase in throughput of the second-tier network due to both CTP between the second-tier network and the first-tier network, and efficient ITP between the second-tier network transmitters. The increase in transmit dimension allows for efficient linear inra-tier precoding, which significantly reduces the intra-tier interference. A processor coupled to the second-tier network transmitters is configured to perform CTP of transmit signals in the second-tier network for cancelling signal interference from the second-tier network transmitters to a first-tier network receiver, thereby generating CTP matrix information. The processor then performs, using the CTP matrix information, ITP for reducing intra-signal interference from the second-tier transmitters to corresponding second-tier receivers.