Based on the model of interference with incomplete rank correlation matrix, a new method of signal processing in antenna arrays is proposed. Numerical simulation shows that the proposed method as applied to estimate the directions of arrival of a plane wave has the variance which is close to the Cramer–Rao lower bound. In the case when the distance and the direction of arrival are unknown, the proposed method has been shown to be more effective than known techniques such as Capon techniques of types I and II, the MUSIC technique. It has also been shown that the proposed technique can be used for effective estimation of the time waveform of the desired signal.