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Robustness is a crucially important issue in watermarking. Robustness against geometric distortion and JPEG compression at the same time with blind extraction remains especially challenging. A blind discrete wavelet transform-discrete Fourier transform (DWT-DFT) composite image watermarking algorithm that is robust against both affine transformation and JPEG compression is proposed. The algorithm improves robustness by using a new embedding strategy, watermark structure, 2D interleaving, and synchronization technique. A spread-spectrum-based informative watermark with a training sequence is embedded in the coefficients of the LL subband in the DWT domain while a template is embedded in the middle frequency components in the DFT domain. In watermark extraction, we first detect the template in a possibly corrupted watermarked image to obtain the parameters of an affine transform and convert the image back to its original shape. Then, we perform translation registration using the training sequence embedded in the DWT domain, and, finally, extract the informative watermark. Experimental work demonstrates that the proposed algorithm generates a more robust watermark than other reported watermarking algorithms. Specifically it is robust simultaneously against almost all affine transform related testing functions in StirMark 3.1 and JPEG compression with quality factor as low as 10. While the approach is presented for gray-level images, it can also be applied to color images and video sequences.