In the presence of usual transmission losses, it is shown that phase noise in a four-level laser can be reduced below the Schawlow-Townes limit when lasing levels are coupled to a squeezed vacuum reservoir. The squeezed vacuum coupled to the lasing mode modifies the phase diffusion rate and dominates the contribution from transmission losses. It is predicted to obtain phase stability in the system and phase noise vanishes for larger squeezing. Gain of the laser remains positive under these conditions.