An apparatus and method are provided that compensates for the problematic time-varying DC offset by effectively eliminating a near-channel amplited modulated interferer from a signal. The apparatus includes a first channel estimator for estimating a plurality of first channel filter taps using a first signal model S_t, and a second channel estimator for estimating a plurality of second channel filter taps {tilde over (H)} using a second signal model {tilde over (S)}_t. The apparatus also includes a processor for selecting which of the first signal model S_t and the second signal model {tilde over (S)}_t is to be used or was used to substantially eliminate the near-channel amplitude modulated interferer from the received signal. The apparatus can be a mobile phone, base station, direct conversion receiver, or communications system (for example).