This paper presents a MIMO two-way relaying scheme where the transceiver filter at the Relay Station (RS) processes the data using Recursive Least Square (RLS) technique based on Inverse QR (IQR) algorithm. The relaying technique used is Amplify and Forward scheme (AF). The channel is assumed to be frequency selective and the Channel State Information (CSI) is available only at the RS. So the transmit and receive processing are both done at the RS. Orthogonal Frequency Division Multiplexing (OFDM) is used so as to combat the Inter-Symbol Interference (ISI) occurring due to the frequency selectivity of the channel. The performance of the IQR-RLS algorithm is verified by comparing its Mean-Square error performance (MSE) with that of a transceiver filter based on Normalized Least Mean Square (NLMS) algorithm. ©2010 IEEE.