Coding of stereo signals

Disclosed is a method of encoding a multichannel signal including at least a first signal component (y) and a second signal component (r). The method comprises the steps of determining a set of filter parameters (Fp) of a prediction filter ( 201 ) such that the prediction filter provides an estimate (P) of the second signal component when receiving the first signal component as an input; and representing the multichannel signal as the first signal component and the set of filter parameters. Further disclosed are a corresponding arrangement for encoding a multichannel signals and a corresponding method and arrangement for decoding such a signal.