The present disclosure relates to a method for decoding a combined AM/FM encoded signal, comprising the steps of: combining said encoded optical signal with light from a local oscillator configured with a local oscillator frequency; converting the combined local oscillator and encoded optical signal into one or more electrical signals by means of at least one opto-electrical converter having a predefined frequency bandwidth, thereby providing an amplified and encoded electrical signal having one or more encoded signal current(s), where one type of states have a higher oscillation frequency than other type of states; rectifying the encoded signal current(s), thereby obtaining an encoded power spectrum, wherein said power spectrum has different states, such as “0”-states and “1”-states, with different power levels such that they can be discriminated, said local oscillator frequency is defined by a positive local oscillator frequency-offset from the frequency of one of the states in said encoded optical signal, and said local oscillator frequency-offset is selected to be dependent on said frequency bandwidth.