The invention automatically enables and disables noise reduction based on a noise threshold. This threshold can be pre-defined by a user for a particular machine or can be defined “on the fly” before/during a telephonic conversation. With this flexibility, the users can “by-pass” the noise reduction and preserve the voice quality which are usually altered/modified by noise reduction algorithms. The present invention provides a novel system and method for monitoring the audio signals, analyze selected audio signal components, compare the results of analysis with a threshold value, and enable or disable noise reduction capability of a communication device.