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The minimum mean-square error (MMSE) criterion is often used for channel estimation in wireless OFDM systems. The MMSE channel estimators perform better than the least-square (LS) criterion-based techniques but their computational complexity is one of the main drawbacks for practical implementation, especially when the number of subcarriers is large. To address this issue while maintaining the performance advantage, we present a new simplified MMSE channel estimator for OFDM systems in multipath fading channels. The proposed method is primarily based on the rank-reduction of the channel correlation matrix in the frequency domain. Simulation results show that the proposed method achieves almost the same performance as the full-rank MMSE method, while significantly reducing the computational complexity.