Aim: This paper presents a new and upgraded wavelet-based multi-focus image fusion technique using average method noise diffusion (AMND).Objective: This paper aims to enhance visual appearance, remove blurring in the final fused image and make objects (fine edges) clearly visible. Methods: This method extends the standard wavelet-based image fusion technique on multi-focus images by incorporating the concept of method noise and anisotropic diffusion in it. This hybrid structure is implemented as post-processing operation in the proposed method. Results: The proposed work shows excellent results in terms of visual appearance and edge preservation. The experimental result of the proposed method is compared with some traditional and nontraditional methods. The proposed method shows a comparatively better result. Conclusion: In the field of image enhancement, this paper describes robustness, effectiveness and adaptive nature of method noise, especially in the field of image fusion. The performance of the proposed method is analyzed qualitatively (good visual appearance) and quantitatively (entropy, spatial frequency and standard deviation). The proposed method has the capability to be incorporated in real-time applications like surveillance in the visual sensor network (VSN).