A novel image fusion algorithm based on lifting wavelet transform was proposed. First, the lifting wavelet transform is used to perform a multiscale decomposition of each image, then different fusion rules was used in different frequency areas, the frequency direction consistency which has been proposed was performed in high frequency images, this method has preserved more details and the fused image is more suitable for human visual perception. This algorithm is successfully used to fuse the retinal images, the experimental results show that the fusion algorithm is effective.