In this paper, we propose a residual echo and noise reduction scheme by using linear predictor for hands-free telephony applications. The proposed scheme whitens residual echo by the linear prediction during the non double-talk. But whitened residual echo signal still has speech characteristics. In this scheme, the whitened residual echo signal is more whitened by using the power of the linear prediction error signal and the linear predicted signal. After whitening process, near-end speech and ambient noise is present during double-talk but white noise will appear during non double-talk situation. By linearly predicting again the combined signal of the near-end speech and the whitened signal, the ambient noise is removed. Through computer simulation, it is shown that the proposed method performs well at the side of AIC (acoustic interference cancellation).