Cache oblivious algorithms are cache conscious and cache efficient algorithms, independent of cache size of the computer system. We consider the simple average filtering algorithm in the field of image processing. This algorithm is used for image enhancement technique. The algorithm incurs huge number of cache misses while it processes the image matrix. We propose a cache oblivious version of average filtering algorithm. The new algorithm makes better utilization of cache than does original average filtering algorithm. The experiments indicate that the new algorithm performs better reducing the cache misses by at most 80% than its traditional counterpart being independent of cache size for various input matrices.