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In this paper, we propose a low complexity gradient based approach for enabling the Tone Reservation (TR) technique to reduce the peak-to-average power ratio (PAPR) of orthogonal frequency division multiplexing (OFDM) signals. The performance of the proposed algorithm is evaluated for different pilot location in the frequency domain, and also in combination with the discrete Fourier transform (DFT) spreading technique proposed in [Heung-Gyoon Ryu, et al., 2007]; in order to further reduce the PAPR. Simulation results show that the new technique achieves significant PAPR reductions, which are further enhanced when it is combined with DFT spreading. The simulation results also show that the performance of the technique is dependent on the pilot positions. In addition, further investigation was performed where the reduction tones are constrained, equal to the average power mask for the data tones, by a simple projection rule in the frequency domain both for the TR scheme and for the combined scheme. Simulation results show that the contiguous pilot arrangement provides better PAPR reduction performance in both cases, when the peak-cancellation signal is constrained in the frequency domain.