This study presents a fabric level set method for contour extraction in medical images using novel coarse-to-fine level set scheme. Medical image segmentation is an atomic challenge for many researchers. The challenges are arisen due to the poor image contrast and artifacts that result in diffuse organ/tissue boundaries. Medical images are fused by using Brovey transform fusion to increase the contrast of the image. The discrete wavelet transform is utilized for extracting the medical images. Coarse-to-fine level set scheme is used for perfect segmentation. Extensive experiments have been executed on Magnetic Resonance Images (MRI) and Computed Tomography Images (CRI) to validate the proposed algorithm.