Orthogonal frequency division multiplexing (OFDM) continues to be the most preferred signal-multiplexing scheme for high-speed data communication. However, OFDM signals are known to have the problem of high peak-to-average power ratio (PAPR), especially when the number of subcarriers is large, which leads to nonlinear amplification in the high power amplifier and consequently to bit-error rate degradation and out-of-band radiation. In this paper, we propose a new optimal tone reservation method for reducing high PAPR in OFDM signals in order to avoid nonlinear amplification effects. The method employs Chebyshev-norm minimization to determine peak-reduction coefficients for OFDM signal. Simulation results show that the proposed method can achieve high PAPR reduction at the expense of a small loss in data rate and a slight increase in average transmit power. For example, with 4 out of 64 subcarriers reserved for peak-reduction coefficients, which represents 6.25% data-rate loss, the method can achieve 4.06 dB of PAPR reduction with only a 0.46 dB increase in average transmit power. Similarly, when 8 subcarriers or 12.5% of the total number of subcarriers are reserved, a PAPR reduction of 5.75 dB is achieved with a paltry 0.19 dB rise in transmit power.