System and method for telemetry communication provide enhance noise cancellation in well intervention operations. The system and method employ a surface panel operable to transmit and receive a telemetry signal through a wireline extending along a wellbore. A power converter receives and converts electrical power from the cable to operating power for a downhole tractor motor. A modem coupled to the cable processes and provides the telemetry signal to a microcontroller. A noise signal pathway provides a noise signal from the tractor motor directly to the microcontroller, the noise signal representative of electrical noise generated by the downhole tractor. The microcontroller performs noise cancellation on the telemetry signal to produce a de-noised telemetry signal by obtaining an estimated noise channel transfer function for the noise signal, and applying the estimated noise channel transfer function and the noise signal to the telemetry signal from the modem.