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Image denoising methods have been implemented in both spatial and transform domains. Each domain has its advantages and shortcomings, which can be complemented by each other. State-of-the-art methods like block-matching 3D filtering (BM3D) therefore combine both domains. However, implementation of such methods is not trivial. We offer a hybrid method that is surprisingly easy to implement and yet rivals BM3D in quality.
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Knaus et al. (2013) studied this question.