In the hands free telephone environment the reduction of the acoustic echo of the far speaker is a major problem. Recent developments of algorithms use a conventional echo compensator and in addition a time domain filter in the sending path to attenuate the residual echo. A further problem is the reduction of the background noise in the microphone signal. As the signal-to-noise ratio (SNR) in the hands free telephone environment can be very low, the reduction of noise is hard to perform. Most noise reduction methods of today work in the frequency domain. An interesting approach is the combination of the echo tenuation and the noise reduction in a single frequency domain filter. In this paper a structure consisting of a conventional echo canceller and a combined echo attenuation and noise reduction frequency domain filter is proposed.