Method and apparatus to reduce interference in a communication device

An apparatus and method to reduce interference in a communication device particularly effective for second-order interference in direct conversion receiver from a co-located transmitter. This is accomplished by characterizing a transfer function of a transmission path from the transmitter to the receiver and applying this transfer function to the baseband signal from the transmitter to provide an estimation of interference to be expected in the received signal. The estimated interference is subtracted from the receiver baseband signal to reduce interference. Adaptive filtering can also be applied to further minimize interference dynamically.