Haze is caused by the scattering of airtight in atmosphere and it deteriorates the contrast of the photographs. Here, we propose a novel approach for haze removal based on Two Dimensional Variational Mode Decomposition (2D VMD). Two dimensional VMD decomposes the input image into desired number of bands with different central frequencies. From this set of modes, an enhanced image is reconstructed by identifying and eliminating the hazy modes. Algorithm is applied for a wide variety of hazy images including both Full Reference and Non Reference image datasets. Image Quality Assessment techniques PSNR, SSIM, and MSE are used for full reference datasets and a completely blind image quality metric, Natural Image Quality Evaluator (NIQE) is used for non reference datasets. Experimental results and analysis shows that the proposed method outperforms few of the existing state-of-the-art methods such as He et al., Kolor Neutralhazer, Photoshop Auto Contrast (PSAC) and Tang et al.