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The shearlet can give an asymptotic optimal representation of edges and contours in images by virtue of it characteristics of good multiresolution and high directionality. In this paper, a novel image fusion strategy is presented for panchromatic high resolution images and multispectral images in shearlet transform domain. The fusion algorithm use the intensity component addition strategy based on LHS transform to preserve spatial resolution and color content. The experimental results demonstrate that the proposed algorithm, compared to intensity-hue-saturation (IHS) transform technique, corresponding wavelet transform-based fusion method, and contourlet transform-based fusion method, can improve spatial resolution and keep spectral information. In addition, the proposed algorithm can extract more useful information from source images, and make the fused image with higher performance in terms of both visual quality and objective evaluation criteria.