This paper proposes an in-band distortion cancellation (IDC) scheme for peak cancellation (PC) based peak-to-average power ratio (PAPR) reduction in massive multi-input multi-output orthogonal frequency division multiplexing (mMIMO-OFDM) with a uniform planar array (UPA). In the proposed scheme, properly selected transmit antennas, i.e., in-band distortion compensation antenna, are designed to compensate in-band distortion because of PC, where the beam-formed IDC signals are transmitted through the compensation antennas so that each user can receive its own data signal with no in-band distortion. Based on the idea that higher in-band distortion compensation accuracy is achieved if the IDC signal itself is less affected by power amplifier nonlinearity, the proposed scheme performs the in-band distortion cancellation by selecting appropriate antenna distribution for compensation to minimize nonlinear distortion of the IDC signal. Simulation results show that the proposed scheme achieves better BER performance than conventional schemes and that instantaneous power at the complementary cumulative distribution function (CCDF)=10^-4 is reduced to 3dB.