Ultrasound in diagnostic imaging is well known for its safety and accessibility. But its efficiency for diagnosis is always limited by the presence of noise. So, in this study, a Log-Exponential shrinkage technique is presented for denoising of ultrasound images. A Combinational filter was designed for the removal of additive noise without losing any details. The speckle noise after homomorphic transformation follows Gaussian distribution and the conventional median estimator has very low accuracy for Gaussian distribution. The scale parameter calculated from the sub-band coefficients after homomorphic transformation was utilized to design the estimator. For shrinkage of wavelet coefficients, a multi-scale thresholding function was designed, with better flexibility. The proposed technique was tested for both medical and standard images. A significant improvement was observed in the estimation of speckle noise variance. For quantitative evaluation of the proposed technique with existing denoising methods, Mean Squared Error (MSE), Structural Similarity Index (SSIM), and Peak Signal to Noise Ratio (PSNR) were used. At the highest noise variance, the minimum improvement achieved by the proposed denoising technique in PSNR, SSIM, and MSE was 10.65%, 23.21%, and 30.46% respectively.