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Clipping is an efficient and simple method to reduce the peak-to-average power ratio (PAPR) of OFDM signals. However, clipping causes distortion and out-of-band radiation. In this paper, a novel iterative receiver is proposed to estimate and cancel the distortion caused by clipping noise. The proposed method is applied to clipped and filtered OFDM signals. It is shown by simulation that for an 802.11a system, the PAPR can be reduced to as low as 4 dB while the system performance can be restored to within 1 dB of the non-clipped case with only moderate complexity increase and with no bandwidth expansion.