||For making an image, which is more suitable for segmentation, feature extraction, object recognition, and Human Visual System, image fusion is frequently used technique. It combines complimentary information from different images of the same scene in a single image. In this paper, a simple but efficient algorithm is presented for image fusion employed in wavelet packet domain. For fusion, all the source images are decomposed into low and high frequency sub-bands and then fusion of high frequency sub-bands is done by the means of Directive Contrast while for low frequency median values is used. To reconstruct the fused image, inverse wavelet packet transform is performed. The performance of the algorithm is carried out by the experimental evaluation and the comparison is carried out with the existing algorithms.