A new variational level set approach is proposed for lung nodule segmentation in lung CT scans. A general lung nodule shape model is proposed using implicit spaces as a signed distance function. The shape model is fused with the image intensity statistical information in a variational segmentation framework. The nodule shape model is mapped to the image domain by a global transformation that includes inhomogeneous scales, rotation, and translation parameters. A matching criteria between the shape model and the image implicit representations is employed to handle the alignment process. Transformation parameters evolve through gradient descent optimization to handle the shape alignment process and hence mark the boundaries of the nodule “head.” The embedding process takes into consideration the image intensity as well as prior shape information. A nonparametric density estimation approach is employed to handle the statistical intensity representation of the nodule and background regions. The proposed technique does not depend on nodule type or location. Exhaustive experimental and validation results are demonstrated on 742 nodules obtained from four different CT lung databases, illustrating the robustness of the approach.