Beat classification and denoising are two challenging and fundamental operations when processing digital electrocardiograms (ECG). This paper proposes the extended segmented beat modulation method (ESBMM) as a tool for automatic beat classification and ECG denoising. ESBMM includes four main steps: (1) beat identification and segmentation into PQRS and TU segments; (2) wavelet-based time-frequency feature extraction; (3) convolutional neural network-based classification to discriminate among normal (N), supraventricular (S), and ventricular (V) beats; and (4) a template-based denoising procedure. ESBMM was tested using the MIT–BIH arrhythmia database available at Physionet. Overall, the classification accuracy was 91.5% while the positive predictive values were 92.8%, 95.6%, and 83.6%, for N, S, and V classes, respectively. The signal-to-noise ratio improvement after filtering was between 0.15 dB and 2.66 dB, with a median value equal to 0.99 dB, which is significantly higher than 0 (p < 0.05). Thus, ESBMM proved to be a reliable tool to classify cardiac beats into N, S, and V classes and to denoise ECG tracings.