High-resolution, single-shot on-axis digital holography is proposed. Generally, an on-axis configuration samples carrier fringes with higher spatial resolution compared to an off-axis configuration. However, the reconstructed image is obtained with unnecessary images of a conjugate image and a zero-order beam. The proposed method uses a phase-modulated illumination beam and image processing to eliminate these unnecessary images. Since time-division and parallel phase-shifting methods are not required, the proposed method has higher temporal and spatial resolutions. During image processing, the conjugate image is removed by filtering on the Fresnel domain while keeping most of the information of the object image intact. The usefulness of the proposed method is confirmed by a numerical simulation and an optical experiment.