Disclosed is a method and apparatus for processing signals in a satellite/laser positioning system capable of generating location coordinates from received satellite signals and a received laser signal. A height coordinate bias value is maintained by a filter processor during periods when the laser signal is available. The height coordinate bias value represents an estimated difference between a satellite signal derived height coordinate and a laser signal derived height coordinate. During periods when the laser signal is available, the laser signal derived height coordinate is output. During periods when the laser signal is not available, a corrected height coordinate value is generated by applying the height coordinate bias value to the satellite signal derived height coordinate.