In this paper we present improved signal processing techniques which can be used to reduce the discrete as well as spatially spread clutter in radar systems through space-time processing. Several techniques are proposed for clutter reduction, most of them model the clutter statistically. The proposed clutter reduction technique models the clutter using parametric modeling. The clutter contained in the measurements is treated as an ARMA model. The advantage of such approach lies therein that once the clutter is satisfactorily known, any target will show up against the known strong clutter background.