Orthogonal Frequency Division Multiplexing (OFDM) is a very attractive digital transmission method developed to meet the increasing demand for higher data rates in communications which can be used in both wired and wireless environments. OFDM consist of large number of independent subcarriers, as a result of which the amplitude of such a signal can have high peak values. High peak to average power ratio (PAPR) of the transmitted signals is one of the major drawbacks of OFDM. Several approaches exist to reduce PAPR of OFDM symbols. Precoding is a new method which is having less complexity compared to the other power reduction techniques and also it can reduce PAPR considerably and results in no distortion. In this paper, a combination of clipping and precoding technique is proposed to reduce PAPR. The reduction in PAPR of the OFDM signal is obtained through Discrete Cosine Transform-II (DCT) combined with clipping algorithm. The obtained results show that this precoding scheme is an attractive solution to the PAPR problem of OFDM signals. The proposed technique gives good result because the PAPR of precoded clipped signal would be less than that of single precoded signal.