Physiological hand tremor causes undesirable vibration of hand-held surgical instruments which results in imprecisions and poor surgical outcomes. Existing tremor cancellation algorithms are based on detection of the tremulous component from the whole motion; then adding an anti-phase tremor signal to the whole motion to cancel it out. These techniques are based on adaptive filtering algorithms which need a reference signal that is highly correlated with the actual tremor signal. Hence, such adaptive approaches use a non-linear phase filter to pre-filter the tremor signal either offline or in real-time. However, pre-filtering causes unnecessary delays and non-linear phase distortions as the filter has frequency selective delays. Consequently, the anti-phase tremor signal cannot be generated accurately which results in poor tremor cancellation. In this paper, we present a new technique based on singular spectrum analysis (SSA) and its recursive version, that is, recursive singular spectrum analysis (RSSA). These algorithms decompose the whole motion into dominant voluntary components corresponding to larger eigenvalues and oscillatory tremor components having smaller eigenvalues. By selecting a group of specific decomposed signals based on their eigenvalues and spectral range, both voluntary and tremor signals can be reconstructed accurately. We test the SSA and RSSA algorithms using recorded tremor data from five novice subjects. This new approach shows the tremor signal can be estimated from the whole motion with an accuracy of up to 85% offline. In real-time, tolerating a delay of ≈ 72ms, the tremor signal can be estimated with at least 70% accuracy. This delay is found to be one-tenth of the delay caused by a conventional linear-phase bandpass filter to achieve similar performance in real-time.