A frequency domain long-term prediction system and method for estimating and applying an optimum long term predictor. Embodiments of the system and method include determining parameters of a single-tap predictor using a frequency-domain analysis having an optimality criteria based on spectral flatness measure. Embodiments of the system and method also include determining parameters of the long-term predictor by accounting for the performance of the vector quantizer in quantizing the various subbands. In some embodiments other encoder metrics (such as signal tonality) are used as well. Other embodiments of the system and method include determining the optimal parameters of the long-term predictor by accounting for some of the decoder operation. Other embodiments of the system and method include extending a 1-tap predictor to a k-th order predictor by convolving the 1-tap predictor with a pre-set filter and selecting from a table of such pre-set filters based on a minimum energy criteria.