A new technique for embedding visible watermarks into a digital image is described in this paper, which uses statisticalproperties of each pixel and its immediate surrounding pixels in the host image, and also the statistical properties of the host image andthat of the image to be embedded (watermark), as the pixels in the host image are replaced one by one by the pixels in the watermarkimage. The aim is to establish a relationship between pixels in the images that will make the embedded watermark robust and semi-transparent, and to minimize errors caused by watermark addition and subtraction. Also, the original image can be completely recon-structed from the watermarked images.