An automatic gain control (AGC) method according to the present invention applies an initial gain by a digital AGC circuit in a timeslot is determined using a final calculated gain from the same timeslot in the previous frame together with an offset factor. An erase function is activated for a given data sample block when the number of saturated data samples that are detected within the block exceeds a threshold value. The power measurement made by the AGC circuit and used to update the gain is adjusted based on the number of measured data samples that are saturated. These elements provide a gain limiting function and allows limiting of the dynamic range for further signal processing.