A method is proposed to reconstruct signals from incomplete data. The method, which can be interpreted both as a discrete implementation of the so-called prior discrete Fourier transform (PDFT) spectral estimation technique and as a variant of the algebraic reconstruction technique, allows one to incorporate prior information about the reconstructed signal to improve the resolution of the signal estimated. The context of diffraction tomography and image reconstruction from samples of the far-field scattering amplitude are used to explore the performance of the method. On the basis of numerical computations, the optimum choice of parameters is determined empirically by comparing image reconstructions of the noniterative PDFT algorithm and the proposed iterative scheme.