In this paper, we propose a new demosaicking scheme suitable for wireless endoscope. The proposed approach consists of an iterative process where two effective filters are applied to luminance image and color different image, respectively. Since some prior information about the original color image is introduced and the penalty term is quadratic, the iterative convergence is guaranteed. The new method is especially good at reconstructing the image suffering lens blurring and wireless channel noise. We have compared the proposed demosaicing algorithm with current state-of-the-art techniques reported in literature. Ours outperforms them on visual quality and objective criteria.