Color distortion is the main weakness of the current fusion techniques, which occurs because of radiometric differences between panchromatic (PAN) and multispectral (MS) images. In this study, a novel fusion technique was developed to merge the PAN and MS images of the GeoEye-1 satellite and produce superior fused images without color distortion. This technique proposes reducing the difference in radiometry between the PAN band and the MS bands by using only the parts of the MS bands inside the area of the PAN band. Therefore, modification coefficients were used for the MS bands in the definition of the intensity (I) equation based on their overlapping areas with the PAN band. As the reflectance of vegetation is high in the NIR band and low in the RGB bands, this technique suggests using an additional coefficient for the NIR band in the definition of the I equation to add the correct effect of vegetation. This coefficient is variable for all types of land cover based on the percentage of the agricultural areas within the image, which leads to significant and stable performance for all types of land cover. This study aims to evaluate the performance of this technique by a comparison with five standard fusion techniques: fast-intensity-hue-saturation, principal component analysis, Gram Schmidt fusion, hyper-spherical color space, and Ehlers fusion. Three datasets of GeoEye-1 satellite PAN and MS images in Tanta City, Egypt, with different land cover classes (agricultural, urban, and mixed areas), were used in this study. The output fused images were compared with the original PAN and MS images by statistical analysis and visual inspection. The proposed fusion technique demonstrated great efficiency in producing fused images of superior spatial and spectral quality for all types of land cover.