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The paper presents an improved, low power algorithm for the DSP implementation of space-time block codes (STBC) using the previous reported maximum likelihood algorithm (Tarokh, V., et al., IEEE J. Select. Area Commun. vol.17, p.451-60, 1998). The new algorithm arrives at the same decision with less computation and reduced power dissipation. It is easy to using this algorithm in low-rank STBC and hopefully in high-rank STBC for an actual DSP. Based on Tarokh's algorithm, a more efficient algorithm is developed by utilizing the properties of the constellation signals and decision matrices. In most cases, the new algorithm results in more than 30% reduction in the computational complexity.