Noise cancellation is one of the most important applications of adaptive filters. The employment of adaptive filtering in most digital signal processing tasks is currently an area of growing interest as adaptive filters, due to their dynamic nature, perform better than the traditional filters in compensating for random noise in their environment. However, the compensation for impulsive interference or noise is desired since most adaptive algorithms earlier proposed modelled noise as a random process of the White Gaussian distribution. A modified robust mixed-norm (MRMN) algorithm recently proposed to compensate for impulsive interference has been found to be hardware efficient, however the MRMN algorithm has only been tested on adaptive FIR system identification task. In this paper, an adaptive IIR filter based on MRMN adaptive algorithm is proposed and tested for noise cancellation task. The developed filter structure was modelled and simulated in MATLAB environment. The results obtained showed that the MRMN algorithm does in fact compensate for the presence of impulsive interference, however, at a higher computational complexity relative to the LMS algorithm.