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Knowledge and information are the basis of informed travel behavior. The foundation of individual choice in transportation decision-making is improved by the availability and robustness of traveler information. Information systems known as intelligent transportation systems (ITS) have evolved along with other technological advances to improve the availability of transportation system information to travelers. An innovative image fusion algorithm based on wavelet decomposition is presented in this paper to combine two kinds of images from infrared camera and visible light camera into a single composite image. Prewitt operator is utilized to detect the edge of low-frequency components in each wavelet decomposition level. If the point is just on the detected edge, the wavelet coefficients of the fused image will be chosen from the wavelet coefficients of visible images or infrared images, other wise, the weighted average arithmetic will be used. Experimental results have shown that most of the final composite images have more complete information content and better perceptual quality than either of the source images. The results indicate that application of this algorithm improves performance of ITS.