A CDR circuit for use in an optical receiver is provided that performs automatic rate negotiation. The CDR circuit is configured to determine whether the incoming data signal has a first, second or third data rate. If the CDR circuit determines that the incoming data signal has the first data rate, the CDR circuit places itself in a bypass mode of operations so that CDR is not performed. If the CDR circuit determines that the incoming data signal has the second or third data rates, the CDR circuit places itself in a CDR mode of operations and performs CDR on the incoming data signal.