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The authors review the notion of multiwavelets and describe the use of the discrete multiwavelet transform (DMWT) in image fusion processing. Multiwavelets are extensions from scalar wavelets, and have several advantages in comparison with scalar wavelets. Multiwavelet analysis can offer more precise image analysis than wavelet multiresolution analysis. A novel fusion algorithm is presented for multisensor images based on the discrete multiwavelet transform that can be performed at pixel level. After the registering of source images, a pyramid for each source image can be obtained by applying decomposition with multiwavelets in each level. The multiwavelet decomposition coefficients of the input images are appropriately merged and a new fused image is obtained by reconstructing the fused multiwavelet coefficients. This image fusion algorithm may be used to combine images from multisensors to obtain a single composite with extended information content. The results of experiments indicate that this image fusion algorithm can provide a more satisfactory fusion outcome.