Spectrally efficient FDM (SEFDM) was proposed as a spectrally efficient scheme. An iterative fast Fourier transform (FFT) detector jointly operating with a channel decoder was also proposed for coded SEFDM. Unfortunately, the iterative FFT detector requires relatively high complexity for some bandwidth compression factors. A new detection scheme for the coded SEFDM is proposed. In the proposed scheme, the inter-carrier interference is iteratively estimated and cancelled in frequency domain. The proposed scheme not only offers virtually identical performance but also requires less complexity compared with the iterative FFT detector.