It is proposed to produce phase sensitive amplification in two stages:
(i) In the first stage, the ''preparation stage'', correlations betwe
en pairs of different two-level atoms, which are initially in the uppe
r or lower states, are produced by their interaction with two-mode squ
eezed vacuum radiation. (ii) In the second stage, the ''amplification
stage'', the correlated pairs of atoms from the first stage are insert
ed in the linear amplifier where a phase sensitive amplification is ob
tained. According to the analysis it is shown that significant quantum
noise reduction can be obtained by using the present system.