-A new LMS algorithm with a variable step-size and its application to improve the quality of broadcast-telephone system use in underground coal mines is presented in this paper. The step-size of the proposed algorithm is proportional to not only the norm of the smoothed gradient vector but also the smoothed mean-square error. Simulation results are presented to support the analysis and to compare the performance of the new LMS algorithm with the ordinary LMS, NLMS algorithms. They show that the performance of the new algorithm in stationary as well as in non-stationary environment is superior to ordinary LMS, NLMS algorithms.