Efficient suppression of the residual stellar light is paramount to the success of exoplanet imaging efforts. We present a new approach to diffraction suppression on extremely large telescopes. The method is based on the realization that by obscuring part of the wavefront in the Lyot stop we can change the shape of the corresponding PSF. This obscuration is then modulated leading to modulated Airy pattern, while image of a planet - if present - is only slightly affected. The modulation could then be removed from the set of images, leading to better SNR of the possible planets. Simulation of the European Extremely Large Telescope has been used to test this approach.