Adaptive noise cancellation is an extensively researched area of signal processing. Many algorithms had been studied such as least mean square algorithm (LMS), recursive least square algorithm, and normalized LMS algorithm. The statistical characteristics of noise are fast in nature and the algorithms for noise cancellation should converge fast. Since LMS algorithm has slow convergence; in this paper, a variable leaky LMS (VLLMS) algorithm is explored. VLLMS is implemented using the concept of hardware-software cosimulation using Xilinx System Generator. The design is implemented on Virtex-6 ML605 field programmable gate array board. The implemented design is tested for sinusoidal signal added with an additive white Gaussian noise. The design summary and the utilization summary are presented.