In this paper, a novel scheme to eliminate common-mode voltage (CMV) is proposed for three-level neutral-point clamped (NPC) inverters. In the proposed scheme, a low-power full-bridge converter is utilized to produce compensatory voltage for CMV, which is injected into an NPC inverter through a single-phase four-winding transformer. With the proposed circuit, the power range for applications is not limited, and the maximum modulation index of the inverter is not reduced. These features are suitable for high-power medium-voltage machine drives. The effectiveness of the proposed method is verified by simulation and experimental results.