In this work, we present an adaptive technique to reduce high peak-to-average power ratio in coded orthogonal frequency division multiplexing. High peak-to-average power ratio has been a primary hurdle for the use of orthogonal frequency division multiplexing in low cost applications. Our coding approach for reduction of peak-to-average power ratio combines the error correction capability of the channel encoder and achieves peak-to-average power ratio reduction in the OFDM system. Our technique is easily implemented in terms of encoding as well as decoding. We develop analytical analysis of the maximum peak-to-average power ratio reduction achievable by this method. We consider the effect on bit error rate based on general analysis of antipodal signals.