An estimation method is provided for use in a receiver of an OFDM (orthogonal frequency division multiplexing) system to estimate the ICI (inter-carrier interference) and the noise power of a channel. Two pilot signals respectively carried by two subcarriers are received from the channel wherein the two pilot signals are adjacent and differ by a first phase angle. Another two pilot signals respectively carried by another two subcarrier are received from the channel wherein the another two pilot signals are adjacent and differ by a second phase angle. According to some embodiments of the invention, these phases are correlated with the ICI power, but are uncorrelated with the noise power. The estimation method then individually estimates the ICI power and noise power according to the first phase and the second phase.