Abstract. Evidences favouring a dynamic receptive field model of retinal ganglion cells and the cells of Lateral Geniculate Nucleus (LGN) have been presented based on the perception of some brightness-contrast illusions. Of the different kinds of such stimuli, four, namely the Simultaneous Brightness-contrast, the White effect, the DeValois and DeValois checkerboard illusion and the Howe stimulus have been chosen to establish this model. The present approach attempts to carry forward the works that look upon visual perception as a step-by-step information processing task rather than a rule-based Gestalt approach and provides a new biologically inspired tool for simultaneous smoothing and edge enhancement in image processing.