A new shrinkage technique in wavelet domain called hyper shrinkage that uses hyperbolic function for improved denoising is explained. The methodology is statistically significant in terms of signal recovery and improving signal-to-noise ratio over both hard and soft shrinkage. A mathematical treatment of proposed shrinkage function shows an improvement over the existing shrinkage function in terms of variance and bias. A simulation of mathematical model shows effectiveness of the proposed shrinkage function.