In this paper, a new implementation method of OFDM (orthogonal frequency division multiplexing) system with an orthogonal basis matrix is developed mathematically. The basis matrix is based on the Haar basis but has an appropriate form for modulation of multiple subchannel signals of OFDM. It is verified that the new basis matrix can be expanded with a simple recursive algorithm. The order of synthesis matrix in the transmitter is increased by the factor of two with every expansion. Demodulation in the receiver is carried out by its inverse matrix, which can be generated recursively with the orthogonal basis matrix. It is shown that perfect reconstruction of original signals is possibly achieved in the proposed OFDMsystem.