Cloud detection and removal is an important preprocessing step for many applications using satellite imagery. The paper proposes a new hybrid cloud detection and removal algorithm combining mean and modified maximum average (MMA) methods. Existing mean and second highest value methods work well for less bright clouds but MMA and hybrid methods are needed to remove both less and highly bright clouds. The results of the proposed hybrid method show it can remove clouds of varying brightness without degrading image quality, making it suitable for different satellite images.