The concept of the modulation transfer function (MTF) can be successfully applied to evaluating the quality of speech transmission in room acoustics (noisy reverberant environments) as functions of reverberation (reverberation time) and additive noise (signal to noise ratio) (Houtgast and Steeneken, J. Acoust. Soc. Am., 77, 1069-1077, 1985). This paper proposes a method of restoring the power envelope from noisy reverberant speech based on the MTF concept. The proposed method does not need the impulse response and noise conditions in room acoustics to be measured to enhance speech. The proposed approach suppresses the effects of reverberation and noise on the power envelopes by restoring the smeared MTF. We carried out massive simulations of noise-suppression and dereverberation on noisy reverberant speech to objectively evaluate the proposed method. The results revealed that the proposed method could simultaneously work well with both the suppression of noise and dereverberation. We further tested the proposed method as a front-end processor for ASR systems in noisy reverberant environments, and compared it with other methods (MFCC, CMN, spectral subtraction, and RASTA filtering on a constant-bandwidth filterbank). The results demonstrated that the improvement in recognition with the proposed method was more effective than that in extremely noisy reverberant environments.