The presence of motion artefacts in ECG signals can cause misleading interpretation of cardiovascular status. Recently, reducing the motion artefact from ECG signal has gained the interest of many researchers. Due to the overlapping nature of the motion artefact with the ECG signal, it is difficult to reduce motion artefact without distorting the original ECG signal. However, the application of an adaptive noise canceler has shown that it is effective in reducing motion artefacts if the appropriate noise reference that is correlated with the noise in the ECG signal is available. Unfortunately, the noise reference is not always correlated with motion artefact. Consequently, filtering with such a noise reference may lead to contaminating the ECG signal. In this paper, a two-stage filtering motion artefact reduction algorithm is proposed. In the algorithm, two methods are proposed, each of which works in one stage. The weighted adaptive noise filtering method (WAF) is proposed for the first stage. The acceleration derivative is used as motion artefact reference and the Pearson correlation coefficient between acceleration and ECG signal is used as a weighting factor. In the second stage, a recursive Hampel filter-based estimation method (RHFBE) is proposed for estimating the ECG signal segments, based on the spatial correlation of the ECG segment component that is obtained from successive ECG signals. Real-World dataset is used to evaluate the effectiveness of the proposed methods compared to the conventional adaptive filter. The results show a promising enhancement in terms of reducing motion artefacts from the ECG signals recorded by a cost-effective single lead ECG sensor during several activities of different subjects.