To enable the frequency reuse between the new radio (NR) and the long-term evolution (LTE) systems, inverse discrete Fourier transform-based Vandermonde-subspace frequency division multiplexing (IDFT-VFDM) has been proposed to exploit the guard intervals of the conventional orthogonal frequency division multiplexing (OFDM) system. One important issue of the IDFT-VFDM system is the high peak-to-average power ratio (PAPR), which distorts the transmitted signal and causes severe performance degradation. Compared to OFDM, the method to reduce the PAPR in IDFT-VFDM requires unique design to guarantee zero interference to the legacy LTE system. To deal with this problem, a unitary matrix based method is proposed to design the precoder at the NR users to reduce the PAPR, which can also guarantee the minimum residual interference to the LTE system. Simulation results are demonstrated to verify the effectiveness of the proposed scheme.