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Two new techniques were suggested in this research. The first one is for optimizing image restoration with Wiener filter by suggesting an efficient method for estimating an optimum value for the signal to noise ratio parameter used in Wiener filter restoration formula. The estimated value is different for each segment in frequency domain. Estimation depends on the degraded image only, without any prior knowledge about noise level in the degraded image. The second technique uses the above optimized Wiener filter iteratively to reduce the artifacts that normally appears in the restored image. Restoration using these techniques shows very good results for different degraded images.