Abstract-This paper studies the deployment of multiple-input multiple-output (MIMO) full-duplex (FD) relaying systems in a multi-cell environment, where the source and destination nodes are equipped with single antenna and communicating via a dualhop amplify-and-forward (AF) relay station with multiple receive and transmit antennas in the presence of co-channel interference (CCI). This paper addresses the fundamental challenges of loopback self-interference (LI) and CCI when incorporating FD relaying in cellular systems. Due to the higher frequency reuse in FD relaying compared to its half-duplex (HD) relaying counterpart, the CCI is expected to double as the FD relay station simultaneously schedule uplink and downlink transmission on the same channel. The optimal design of relay receive and transmit precoding weight vectors which maximizes the overall signal-to-interefernce-plus-noise ratio (SINR) is formulated by a proper optimization problem, then a closed-form suboptimal solution based on null space projection is proposed. The proposed precoding vectors are based on the added receive and transmit zero-forcing (ZF) constraints used to suppress the co-channel interference and loopback self-interfernce, respectively. To this end, exact closed-form expressions for the outage probability and ergodic capacity are derived, where a simpler lower-bound expressions are also presented. In addition, the asymptotic high signal-to-noise ratio (SNR) outage probability approximation is also considered, through which the diversity order of the null space projection (ZF/ZF) scheme is found to achieve min (NR − M, NT − 1), where NR and NT are the number of relay receive and transmit antennas, respectively, and M is the number of CCI interferers. Numerical results sustained by Monte-Carlo simulations show the exactness of the proposed analytical expressions as well as the tightness of the proposed lower-bound expressions. In addition, simulation results for the minimum mean square error (MMSE)/ZF scheme is also considered for comparison purposes. Our results reveal that MIMO FD relaying could substantially boost the system performance compared to its conventional MIMO HD relaying counterpart.Index Terms-MIMO relaying, full-duplex relaying, halfduplex relaying, zero-forcing (ZF), minimum mean square error (MMSE), outage probability, ergodic capacity, co-channel interference.