The present application relates to a system and method for providing autoregressive based residual echo suppression in the STFT domain in a bidirectional vehicle communications system including receiving, from a communications processor, a speaker signal for coupling to a speaker, receiving, from a microphone, a microphone signal wherein the microphone signal includes a voice signal and a residual echo signal, transforming the signals to the STFT domain generating an estimated power spectral density of the residual echo signal in response to a prior power spectral density of a prior residual echo signal, isolating the voice signal from the microphone signal by multiplying the estimated residual echo gain generated using the estimated power spectral density of the residual echo signal with the microphone signal, transforming the signals back to the time domain and coupling the voice signal to the communications processor.