A method of reporting channel state information (CSI) with reduced feedback overhead in a MIMO-OFDM system is provided. A receiver first estimates CSI of a multiple-input multiple-output (MIMO) channel based on a sounding signal transmitted from a transmitter. The CSI comprises L channel response matrices, and each matrix corresponds to an OFDM tone in the MIMO channel. Each channel response matrix is then decomposed into a first CSI component and a second CSI component. The receiver selects a first subset of the first CSI component based on a first tone group size and a second subset of the second CSI component based on a second tone group size. Finally, the receiver transmits the selected subsets of the first and the second CSI components to the transmitter. The reduced feedback does not have significant loss in the information content of CSI because of the coherent bandwidth in typical OFDM systems.