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A new method of chaotic communication system based on digitization of the chaotic signal is proposed. The digitally encoded chaotic signal is transmitted through a practical channel and recovered at the receiver. Simulation results show that despite being errors in the received bit sequence, the observer is able to synchronise and recover message signal with high accuracy provided bit error rate is < 10-4. The proposed method is compatible with the existing digital communication system and hence could be implemented in real scenario with no or little modification in the existing infrastructure.