An apparatus and a method for interference cancellation in a transmitting end of a multi-antenna system are provided. A precode is generated which maximizes a diversity gain of one or more receive antennas using channel information of the receive antennas to be serviced. Transmit powers of the receive antennas are updated by taking into account a power loss and a shaping loss according to a dirty paper coding. Transmit signals are precoded by updating the precode according to the updated transmit powers. The dirty paper coding is performed on the precoded transmit signals to be transmitted to the receive antennas.