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In this paper a digital frequency domain RFI (radio frequency interference) cancellation scheme for DMT (discrete multitone) based VDSL (very high speed digital subscriber line) systems is presented. The proposed algorithm has been optimized and characterized in terms of complexity and performance. Optimizations were also performed from an implementation point of view by deducing key dependencies among our RFI model coefficients that let us drastically reduce the size of the memories involved. System simulations showed the effectiveness of the canceller. In terms of VDSL performance parameters such as bit rate, the optimized cancellation scheme recovers almost totally the performance degradation due to RFI.