Direct observational evidence for the creation of nuclear star clusters (NSCs) is needed to support the proposed scenarios for their formation. We analysed the dwarf galaxy UGC 7346, located in the peripheral regions of the Virgo Cluster, to highlight a series of properties that indicate the formation of a NSC caught in its earlier stages. First, we report on remnants of a past interaction in the form of diffuse streams or shells, suggesting a recent merging of two dwarf galaxies with a 1:5 stellar mass ratio. Second, we identify a number of globular cluster (GC) candidates that are broadly compatible in colour with the main component that is both more extended and more massive. Strikingly, we find these GCs candidates to be highly concentrated towards the centre of the galaxy (RGC = 0.41 Re). We suggest that the central concentration of the GCs is likely produced by the dynamical friction of this merger. This would make UGC 7346 a unique case of a galaxy caught in the earlier stages of NSC formation. The formation of NSCs due to collapse of GCs by dynamical friction in dwarf mergers would provide a natural explanation of the environmental correlations found for the nucleation fraction for early-type dwarf galaxies, whereby denser environments host galaxies with a higher nucleation fraction.

The discovery potential from astronomical and other data is limited by their noise. We introduce a novel non-parametric noise reduction technique based on Bayesian inference techniques, FABADA, that automatically improves the signal-to-noise ratio of one- and two-dimensional data, such as astronomical images and spectra. The algorithm iteratively evaluates possible smoothed versions of the data, the smooth models, estimating the underlying signal that is statistically compatible with the noisy measurements. Iterations stop based on the evidence and the χ2 statistic of the last smooth model. We then compute the expected value of the signal as a weighted average of the whole set of smooth models. We explain the mathematical formalism and numerical implementation of the algorithm, and evaluate its performance in terms of the peak signal to noise ratio, the structural similarity index, and the time payload, using a battery of real astronomical observations. Our Fully Adaptive Bayesian Algorithm for Data Analysis (FABADA) yields results that, without any parameter tuning, are comparable to standard image processing algorithms whose parameters have been optimised based on the true signal to be recovered, something that is impossible in a real application. On the other hand, state-of-the-art non-parametric methods, such as BM3D, offer slightly better performance at high signal-to-noise ratio, while our algorithm is significantly more accurate for extremely noisy data, a situation usually encountered in astronomy. The source code of the implementation of the method, is publicly available at https://github.com/PabloMSanAla/fabada.