The invention is a method and apparatus for frequency-domain adaptive filtering that has broad applications such as to equalizers, but is particularly suitable for use in acoustic echo cancellation circuits for stereophonic and other multiple channel teleconferencing systems. The method and apparatus utilizes a frequency-domain recursive least squares criterion that minimizes the error signal in the frequency-domain. In order to reduce the complexity of the algorithm, a constraint is removed resulting in an unconstrained frequency-domain recursive least mean squares method and apparatus. A method and apparatus for selecting an optimal adaptation step for the UFLMS is disclosed. The method and apparatus is generalized to the multiple channel case and exploits the cross-power spectra among all of the channels.