A system and method for cancellation of RF interference in the optical domain. The system and method utilize two Mach-Zehnder electrooptic modulators biased for parallel counter-phase modulation. The method of signal subtraction is referred to as incoherent optical subtraction, since two independent laser sources serve as the optical carrier waves. The system has produced the broadband cancellation result while simultaneously recovering a 50 dBm signal which was initially “buried” under the broadband interference. The cancellation depths achieved by the system are due to the accurate channel tracking and precise time delays attainable with modern optical devices—unattainable with state-of-the-art electronic devices at the time of this writing.