Apparatus for encoding a multi-channel signal having at least three channels (CH1:CH3), comprising: an iteration processor for calculating, in a first iteration step, inter-channel correlation values between each pair of the at least three channels (CH1:CH3), for selecting, in the first iteration step, a pair having a highest value or having a value above a threshold, and for processing the selected pair using a multichannel processing operation (110,112) to derive first multichannel parameters (MCH_PAR1) for the selected pair and to derive a first pair of processed channels (P1,P2), wherein the iteration processor is configured to perform the calculating, the selecting and the processing in a second iteration step using unprocessed channels of the at least three channels (CH1:CH3) and the processed channels (P1,P2) to derive second multichannel parameters (MCH_PAR2) and a second pair of processed channels (P3,P4), wherein the iteration processor is configured to not select the selected pair of the first iteration step in the second iteration step and, if applicable, in any further iteration steps; a channel encoder for encoding channels (P2:P4) resulting from an iteration processing performed by the iteration processor to obtain encoded channels (E1:E3), wherein a number of channels (P2:P4) resulting from the iteration processing and provided to the channel encoder is equal to a number of channels (CH1:CH3) input into the iteration processor; and an output interface for generating an encoded multi-channel signal having the encoded channels (E1:E3) and the first and the second multichannel parameters (MCH_PAR1,MCH_PAR2); wherein the first multichannel parameters (MCH_PAR1) comprise a first identification of the channel in the selected pair for the first iteration step, and wherein the second multichannel parameters (MCH_PAR2) comprise a second identification of the channels in a selected pair of the second iteration step. an iteration processor for calculating, in a first iteration step, inter-channel correlation values between each pair of the at least three channels (CH1:CH3), for selecting, in the first iteration step, a pair having a highest value or having a value above a threshold, and for processing the selected pair using a multichannel processing operation (110,112) to derive first multichannel parameters (MCH_PAR1) for the selected pair and to derive a first pair of processed channels (P1,P2), wherein the iteration processor is configured to perform the calculating, the selecting and the processing in a second iteration step using unprocessed channels of the at least three channels (CH1:CH3) and the processed channels (P1,P2) to derive second multichannel parameters (MCH_PAR2) and a second pair of processed channels (P3,P4), wherein the iteration processor is configured to not select the selected pair of the first iteration step in the second iteration step and, if applicable, in any further iteration steps; a channel encoder for encoding channels (P2:P4) resulting from an iteration processing performed by the iteration processor to obtain encoded channels (E1:E3), wherein a number of channels (P2:P4) resulting from the iteration processing and provided to the channel encoder is equal to a number of channels (CH1:CH3) input into the iteration processor; and an output interface for generating an encoded multi-channel signal having the encoded channels (E1:E3) and the first and the second multichannel parameters (MCH_PAR1,MCH_PAR2); wherein the first multichannel parameters (MCH_PAR1) comprise a first identification of the channel in the selected pair for the first iteration step, and wherein the second multichannel parameters (MCH_PAR2) comprise a second identification of the channels in a selected pair of the second iteration step.