In this paper, image deblurring and denoising are presented. The used images were blurred either with Gaussian or motion blur and corrupted either by Gaussian noise or by salt & pepper noise. In our algorithm, the modified fixed-phase iterative algorithm (MFPIA) is used to reduce the blur. Then a discrete wavelet transform is used to divide the image into two parts. The first part represents the approximation coefficients. While the second part represents the detail coefficients, that a noise is removed by using the BayesShrink wavelet thresholding method.