The aim of this paper is to extend the applicability of an algorithm for solving inconsistent linear systems to the rank-deficient case, by employing incomplete projections onto the set of solutions of the augmented system Ax-r = b. The extended algorithm converges to the unique minimal norm solution of the least squares solutions. For that purpose, incomplete oblique projections are used, defined by means of matrices that penalize the norm of the residuals. The theoretical properties of the new algorithm are analyzed, and numerical experiences are presented comparing its performance with some well-known projection methods.Facultad de Ciencias ExactasFacultad de Ingeniería