A method of and device for generating an amplified optical signal directly in an optical fiber by way of phase-sensitive amplification based on one or more four-wave mixing (FWM) processes. In one embodiment, an input signal and two pump waves are applied to a highly nonlinear fiber (HNLF). The input signal is amplified in the HNLF due to energy transfer from the pump waves to the input signal via a degenerate phase-conjugation (PC) process. In another embodiment, an input signal and first and second pump waves are applied to a first HNLF to generate, via a Bragg scattering (BS) process, an idler signal corresponding to the input signal. The second pump wave is then filtered out and the first pump wave, a third pump wave, and the input and idler signals are applied to a second HNLF, where they interact via a non-degenerate PC process to produce an amplified output signal.