In this paper, we propose a new iterative approach to compensate the nonlinearity and clipping noise in multi-input multi-output orthogonal frequency division multiplexing (MlMO-OFDM) system with nonlinear channel. The proposed approach consists of two stages. Firstly a decision aided method is proposed to eliminate the nonlinearity introduced by high power transmit amplifier (HPA). Then this improved decision observations are employed to achieve the clipping noise compensation. The effectiveness of the proposed approach has been verified by computer simulations.