The two parameters which plays important roleinMRI(magneticresonanceimaging),acquiredby various imaging modalities are Feature extraction andobjectrecognition.Theseoperationswillbecome difficult if the images are corrupted with noise. Noise in MR image is always random type of noise. This noise will change the value of amplitude and phase of each pixel inMR image. Due to this, MR image gets corrupted and we cannotmakeperfect diagnosticfor abody. Sonoise removal is essential task for perfect diagnostic. There are different approaches for noise reduction, each ofwhichhasitsownadvantagesandlimitation.MRI denoising is a difficult task task as fine details in medical image containing diagnostic information should not be removed during noise removal process. In this paper, we are representing an algorithm for MRI denoising in which weareusingiterationsandGaussianblurringfor amplitudereconstructionandimagefusion,anisotropic diffusion and FFT for phase reconstruction. We are usingthe PSNR(Peak signal to noise ration),MSE(Mean square error) and RMSE(Root mean square error) as performance matrices to measure the quality of denoised MRI. The finalresultshowsthatthismethodiseffectively removing the noise while preserving the edge and fine information in the images.