demonstrate numerically that local conversion of dispersion-managed return-to-zero pulses into nonlinear Schrodinger solitons fully restores optical filtering control for energy stabilization, thus permitting the association of optical regeneration with dispersion-managed propagation. Experimental validation is achieved by means of 40-Gbit/s regenerated dispersion-managed loop transmission over 10,000 km. (C) 2000 Optical Society of America OCIS codes: 190.5530, 060.4510.