This paper presents an improved classification system for brain tumours using wavelet transform and neural network. The anisotropic diffusion filter was used for image denoising, and the performance of the oriented rician noise reducing anisotropic diffusion (ORNRAD) filter was validated. The segmentation of the denoised image was carried out by fuzzy c-means clustering. The features were extracted using symlet and coiflet wavelet transforms, and the Levenberg-Marquardt algorithm based neural network was used to classify the magnetic resonance (MR) images. This classification technique of MR images was tested and analysed with existing methods, and its performance was found to be satisfactory with a classification accuracy of 93.24%. The developed system could assist physicians in classifying MR images for better decision-making.