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Chaos based encryption may offer new quality in secure data transmission. A recently proposed chaotic-key based algorithm(CKBA) has been shown to be unavoidably susceptible to chosen/known-plaintext attacks and ciphertext-only attacks. In this paper , a new algorithm based on modified chaotic-key based algorithm (MCKBA) and finite field wavelet packet division multiplexing (FFWPDM) is proposed for secure orthogonal multiplexing of images . Further, VLSI architecture of the proposed algorithm is designed. The VLSI architecture is implemented on images using XILINX ISE and ModelSim to demonstrate the effectiveness of the proposed scheme.