Although the benefits of precoding and combining of data streams are widely recognized, the potential of precoding the pilot signals at the user equipment (UE) side and combining them at the base station (BS) side has not received adequate attention. This paper considers a multiuser multiple input multiple output (MU-MIMO) cellular system in which the BS acquires channel state information (CSI) by means of uplink pilot signals and proposes pilot precoding and combining to improve the CSI quality. We first evaluate the channel estimation performance of a baseline scenario in which CSI is acquired with no pilot precoding. Next, we characterize the channel estimation error when the pilot signals are precoded by spatial filters that asymptotically maximize the channel estimation quality. Finally, we study the case when, in addition to pilot precoding at the UE side, the BS utilizes the second order statistics of the channels to further improve the channel estimation performance. The analytical and numerical results show that, specially in scenarios with large number of antennas at the BS and UEs, pilot precoding and combining has a great potential to improve the channel estimation quality in MU-MIMO systems.