A finite-difference time-domain method for integration of Maxwell equations is presented. The computational algorithm is based on the leapfrog time stepping scheme with unstaggered temporal grids. It uses a fourth-order implicit time filter that reduces computational modes and fourth-order finite difference approximations for spatial derivatives. The method can be applied within both staggered and collocated spatial grids. It has the advantage of allowing explicit treatment of terms involving electric current density and application of selective numerical smoothing which can be used to smooth out errors generated by finite differencing. In addition, the method does not require iteration of the electric constitutive relation in nonlinear electromagnetic propagation problems. The numerical method is shown to be effective and stable when employed within Perfectly Matched Layers (PML). Stability analysis demonstrates that the proposed method is effective in stabilizing and controlling numerical instabilities of computational modes arising in wave propagation problems with physical damping and artificial smoothing terms while maintaining higher accuracy for the physical modes. Comparison of simulation results obtained from the proposed method and those computed by the classical time filtered leapfrog, where Maxwell equations are integrated for a lossy medium, within PML regions and for Kerr-nonlinear media show that the proposed method is robust and accurate. The performance of the computational algorithm is also verified by analyzing parametric four wave mixing in an optical nonlinear Kerr medium. The algorithm is found to accurately predict frequencies and amplitudes of nonlinearly converted waves under realistic conditions proposed in the literature.