Methods and systems for a mixed time-frequency domain compander, where the expander and compressor are applied in the frequency domain (subbands), while the limiter and the linear gain are applied in the time-domain (full band). Far-end noise reduction is achieved by adapting the expander gain to the far-end noise, near-end noise compensation is achieved by adapting the linear gain and the compressor gain to the near-end noise. The range of the linear gain section is set individually for each subband, but the linear gain is essentially applied to the full band signal via a scaling procedure. The scaling procedure first reduces the compander gain in the frequency domain by a scaling factor and then performs the reciprocal reverse scaling in the time domain. Far-end noise reduction is coupled to near-end noise compensation in order to avoid cross-modulation of the far-end noise by the near-end noise.