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Full‐duplex (FD) mode of communication with efficient transmission scheme is a promising approach for 5G wireless systems by improving the spectral efficiency. This can be attained by making use of various precoding approaches. We propose a new co‐channel interference (CCI)‐aware improvement to signal‐to‐leakage‐and‐noise ratio (SLNR) technique and a suppression filter at the receiver to whiten the interference for the downlink channel. As well, for the uplink (UL) communication, we propose a self‐interference (SI)‐aware enhancement to SLNR scheme and designing a precoder using self‐interference plus noise covariance matrix. The total spectral efficiency is obtained from the sum‐rates of both downlink and uplink communication systems. Simulation results verify that the spectral efficiency (SE) of FD using the proposed scheme performs well relative to the half‐duplex system for all Rician factor …