The use of an adaptive feedback canceler (AFC) for howling suppression in hearing aids seems very attractive since it is not only unaffected by the changes in the operating environment, but it also limits signal degradation due to the feedback signal. This, however, requires a reference signal which is correlated with the feedback signal but not with the input signal. In hearing aids, such a signal is hard to obtain. The output signal could be used as reference if its correlation with the input signal could sufficiently be removed. If the reference signal is correlated with the input signal, the input signal will also be canceled by the AFC. Here, the use of a frequency compressor as a decorrelator is proposed. The performance of this system is then investigated via digital simulation. Results indicated that with the use of the proposed system and the proper choice of system parameters, an increase of about 18 dB in the howling margin could be achieved with minimal deterioration in output signal quality.