When the LMS algorithm is employed in the transversal filter structure, the computational complexity can be kept reasonably low. However, if the impulse response to be estimated is very long or signals involved are highly correlated like a speech the convergence speed becomes slow. The lattice filter is an excellent alternative to improve convergence speed since the lattice structure inherently has the orthogonal property among the backward prediction errors, but at the expense of the excessive computational load. If the input signal to be used can be sufficiently well modeled as a .RHO.-th order autoregressive(AR) process, the reflection coefficients after the .RHO.- th stage will be close to zero. Then, instead of employing the full lattice structure, the joint lattice filter structure can be implemented in conjunction with the transversal filter structure after the .RHO.-th stage. We propose, in this paper, this new lattice/transversal joint structure, and we will call it the reduced lattice filter. Using the reduced lattice filter, we are now able to achieve the performance as good as that of the lattice filter, while maintaining the complexity as low as that of the transversal filter. The proposed filter is particularly useful for an acoustic echo canceller due to the highly correlatedness nature of speeches and the long and frequently changing echo paths.