In this paper the A-law/μ-law Dynamic Range Compression algorithm used in telecommunication systems is proposed for the first time for nonlinear Dynamic Range Compression image deconvolution. In the proposed setup, a joint image of the blurred input information and the blur impulse response are jointly Fourier-transformed via a lens to a CCD camera which acts as a square-law receiver. The CCD camera is responsible for mixing the Fourier transforms of the impulse response and the distorted image to compensate for the phase distortion and then the A-law/μ-law nonlinear transformation is responsible for enhancing both the high frequencies and the signal-to-noise ratio. The proposed technique is supported by computer simulation.© (2007) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.