A method and apparatus are provided for demodulating a received signal containing modulated desired-signal digital data and relayed-interference that results from a nonlinear-distorted interference signal. Estimation of the nonlinear-distorted interference from a pre-distortion interference signal and subsequent cancellation within the received signal of the distorted interference produces a residual-interference signal that is subsequently demodulated to produce estimates of the desired-signal data. The estimation is adapted for changing nonlinear distortion effects.