In this paper a new subspace based technique is proposed for removal of additive white noise in images. The method is based on Time-Domain constrained (TDC) estimator in which the residual noise energy is kept below a threshold while minimizing the signal distortion. The denoising technique employed prewhitening method prior to the subspace filter which is proven to give remarkable results. Experiments were carried out on noise-free images corrupted with simulated additive white noise. The results indicated that the proposed methods provide performance better than the compared methods in terms of the correlation coefficient and SSIM index. © 2011 IEEE.