An efficient technique for restoring the original from a blurred image using the concept of fringe-adjusted joint transform correlation is proposed. This technique employs Fourier plane apodization using the reference image power spectrum to deblur the distorted image. The performance of the proposed technique has been enhanced significantly by employing Fourier plane image subtraction, especially for noisy input scenes involving multiple objects. The image subtraction technique eliminates the unwanted zero-order term and cross-correlation terms produced by similar input scene objects while alleviating the effect of noise that may be present in the unknown input scene. Computer simulation results using noise-free and noise-corrupted input scenes are presented to verify the performance of the proposed technique.