An apparatus and method for transmission and reception in a multi-user Multiple-Input Multiple-Output (MIMO) communication system are provided. In a transmitter, a filter portion receives quantized Channel State Information (CSI) and Channel Quality Information (CQI) from a receiver, calculates a transmit filter value using on the quantized CSI and the CQI, determines an appropriate AMC level for the receiver, and sends a pilot signal including the transmit filter value and information about the determined AMC level on subcarriers in one of a preamble and data symbols. An antenna is used to send the output of the filter portion and receives data from the receiver.