In this paper, we propose a fast DWT-based multi-resolution texture synthesis algorithm in which coefficient blocks of the spatio-frequency components of the input texture are efficiently stitched together to form the corresponding components of the synthesised output texture. We propose the use of an automatically generated threshold to determine the visually significant coefficients, which act as elements of a matching template used in the texture quilting process. We show that the use of a limited set of visually significant coefficients, regardless of their level of resolution, not only reduces the computational cost, but also results in more realistic texture synthesis. A transform domain texture blending strategy is used to remove the remaining artefacts across edges, improving the synthesised texture quality further. We use popular test textures to compare our results with that of the state-of-the-art techniques. Some application scenarios of the proposed algorithm are also discussed.