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A method is proposed for pixel-level satellite image fusion derived directly from a model of the imaging sensor. By design, the proposed method is spectrally consistent. It is argued that the proposed method needs regularization, as is the case for any method for this problem. A framework for pixel neighborhood regularization is presented. This framework enables the formulation of the regularization in a way that corresponds well with our prior assumptions of the image data. The proposed method is validated and compared with other approaches on several data sets. Lastly, the intensity-hue-saturation method is revisited in order to gain additional insight of what implications the spectral consistency has for an image fusion method.