An image watermarking scheme that combines Hermite functions expansion and space/spatial-frequency analysis is proposed. In the first step, the Hermite functions expansion is employed to select busy regions for watermark embedding. In the second step, the space/spatial-frequency representation and Hermite functions expansion are combined to design the imperceptible watermark, using the host local frequency content. The Hermite expansion has been done by using the fast Hermite projection method. Recursive realization of Hermite functions significantly speeds up the algorithms for regions selection and watermark design. The watermark detection is performed within the space/spatial-frequency domain. The detection performance is increased due to the high information redundancy in that domain in comparison with the space or frequency domains, respectively. The performance of the proposed procedure has been tested experimentally for different watermark strengths, i.e., for different values of the peak signal-to-noise ratio (PSNR). The proposed approach provides high detection performance even for high PSNR values. It offers a good compromise between detection performance (including the robustness to a wide variety of common attacks) and imperceptibility.