The coherent reception of intensity modulated signal has been recently widely investigated, in which the signal is recovered by the envelop detection. High linewidth tolerance is achieved with such scheme. However, strong optical carrier exists during the transmission, which degrades the optical power efficiency. In this paper, an efficient modulation scheme for discrete multi-tone (DMT) signal is proposed based on the Mach-Zehnder modulator (MZM). Different from the traditional intensity modulation, the proposed method employs both intensity and phase domain. Thus, the optical carrier power can be greatly reduced by adjusting the bias of MZM around the null point. By employing coherent detection and digital carrier regeneration (DCR), the carrier suppressed DMT signal can be recovered using envelop detection. No carrier frequency or phase estimation is required. Numerical investigations are made to demonstrate the feasibility, in which significant improvements are found for the proposed DCR method, showing great tolerance against laser linewidth and carrier power reduction. Finally, a 124-Gb/s transmission of polarization-division multiplexed DMT (PDM-DMT) signal is demonstrated over 100-km SSMF, with only -8 dB optical carrier to signal power ratio (CSPR).