In this paper. we present a digital image watermarking scheme that uses both human visual system and statistical properties. The scheme places watermark in discrete cosine transform (DCT) domain and spreads the watermark effect on the entire image. We have compared our proposed scheme with two other popular schemes and shown that our proposed scheme yields better results in terms of transparency, robustness and maximal capacity requirements. (C) 2000 Elsevier Science B.V. All rights reserved.