—Iterative K-best sphere detection (SD) and channel decoding is appealing, since it is capable of achieving a nearmaximum-a-posteriori (MAP) performance at a low complexity. However, a potentially excessive computational cost is imposed, especially in a high-throughput Spatial Division Multiplexing (SDM) aided OFDM system emloying a large number of transmit antennas and/or high-order modulation schemes. This problem is further aggravated, when the number of transmit antennas exceeds that of the receive antennas, namely in the challanging scenario of rank-deficient systems. In order to further reduce the complexity imposed, we propose a unity-rate-code-aided (URC) three-stage concantenated transceiver constituted by an inner and outer channel encoder/decoder pair as well as the SDM aided OFDM transmitter and K-best SD. We have demonstrated that our proposed three-stage scheme is capable of achieving a substantial performance gain over the classic two-stage scheme. For example, given ...