A combined processor, such as might be used in a mobile handset or hands-free communication device, provides residual echo suppression and noise reduction while eliminating the need for explicit comfort noise generation. Operating within a near-end communication device, the processor receives an echo-canceled signal that is derived from a near-end input signal, and generates an output signal for subsequent transmission to a far-end communication device by applying a noise attenuation factor to the echo-canceled signal or to an average of that signal. The processor maintains the average signal across periods of speech and non-speech. During far-end-modes of operation, where only incoming audio from the far-end is active, the processor substitutes the average signal for the echo-canceled signal, such that a far-end listener receives the natural sounding average signal without receiving the objectionable, residual echo that may be in the echo-canceled signal.