An echo canceler removes the echo of a receive signal from a transmit signal while also controlling the signal level of the transmit signal. The echo canceler generates signal level data for the transmit signal, updates the signal level data when the transmit signal is active and the receive signal is inactive, and amplifies the transmit signal according to the signal level data. The echo canceler also generates an echo cancellation signal from the receive signal, amplifies the echo cancellation signal according to the signal level data, and subtracts the amplified echo cancellation signal from the amplified transmit signal to obtain a transmit output signal.