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In a digital toll switching office a digital multifrequency (MF) receiver may be more economical than the present analog MF receiver. This paper suggests an algorithm that could be used for digital implementation of such a receiver. The algorithm employs discrete Fourier transform and leads to more efficient design than a system using second-order digital bandpass filters. The presented results of computer simulation of the digital MF receiver employing this method indicate satisfactory performance and good immunity to random noise interference.