It is well known that magnetic resonance magnitude image data obey a Rician distribution. Unlike additive Gaussian noise, Rician "noise" is signal-dependent, and separating signal from noise is a difficult task. Rician noise is especially problematic in low signal-to-noise ratio (SNR) regimes where it not only causes random fluctuations, but also introduces a signal-dependent bias to the data that reduces image contrast. This paper studies wavelet-domain filtering methods for Rician noise removal. We present a novel wavelet-domain filter that adapts to variations in both the signal and the noise.