Abstract: This study deals with the integration of medical images with multimodal Medical Image Fusion (MIF) problem, employing Improved DT-CWT (Dual Tree Complex Wavelet Transform) and a Discrete Optimization Method is to introduce a new approach to fuse panchromatic image and multi-spectral images. In image fusion, two approaches used namely Spatial and Transform. In Spatial fusion, it reduces structural distortions. But, wavelet transform affect the absence of shift invariance and low directional selectivity. These two disadvantages are overcome by Improved DT-CWT (Duel Tree Complex Wavelet Transform) and the problem as a discrete multilevel optimization of an energy functional that balances the offerings of three conflicting terms: a squared error of both MRI and CT Image which giving out strong MRI/CT edges and a prior which favours smooth results by encouraging neighbouring pixels to have similar fused-image values and introduce a transparency-labelling formulation which decreases the computational load. The proposed Improved DT-CWT discrete optimization method is remarkably better than the other fusion method.