A new image restoration filter based upon a physical model of an image degradation is constructed. By means of this filter, signal dependent noise and blur can be suppressed. In particular, image degradation noise can be modeled in generalized form. Noise suppression and deblurring are performed separately. This filter has additional applications when used in conjunction with the degradation model, such as real photographic images and photoelectronic images. Simulation results show that this filter gives a superior performance in restoring an image degraded by signal dependent noise and blur.