The paper is a study demonstrating the application of discrete multiwavelets in Medical image registration. The idea is to improve the image content by fusing images like MRI, CT and SPECT images, so as to provide more information to the doctor. The process of fusion is not new but here the results of study have been compared with the results from FCM algorithm used for similar application. Multiwavelets have been used for better clustering, as their decomposition results were better than Daubechies decomposition. A new feature based fusion algorithm has been used. This method shows results better than other methods for image registration when the images have been taken for the same person at a particular angle. The selective fusion not only gives more information but also helps in disease detection.