In remote sensing image processing, the traditional fusion algorithm is based on the Intensity-Hue-Saturation (IHS) transformation. This method does not take into account the texture or spectrum information, spatial resolution and statistical information of the photos adequately, which leads to spectrum distortion of the image. Although traditional solutions in such application combine manifold methods, the fusion procedure is rather complicated and not suitable for practical operation. In this paper, an improved IHS transformation fusion algorithm based on the local variance weighting scheme is proposed for remote sensing images. In our proposal, firstly, the local variance of the SPOT (which comes from French "Systeme Probatoire d'Observation dela Tarre" and means "earth observing system") image is calculated by using different sliding windows. The optimal window size is then selected with the images being normalized with the optimal window local variance. Secondly, the power exponent is chosen as the mapping function, and the local variance is used to obtain the weight of the I component and match SPOT images. Then we obtain the I'component with the weight, the I component and the matched SPOT images. Finally, the final fusion image is obtained by the inverse Intensity-Hue-Saturation transformation of the I', H and S components. The proposed algorithm has been tested and compared with some other image fusion methods well known in the literature. Simulation result indicates that the proposed algorithm could obtain a superior fused image based on quantitative fusion evaluation indices.