Steganography is the method of providing Computer security in which hiding the required information is done by inserting messages within other messages, which is a string of characters containing the useful information, in a carrier image. Using this technique, the required information from the secret image is embedded into individual rows as well as columns present in the pixels of carrier image. In this paper, a novel fuzzy logic based technique is proposed to hide the secret message in individual rows and in individual columns of pixels of the carrier image and to extract the hidden message in the same carrier image. The fuzzification process transforms the image in to various bitplanes. Pixel number and Correlation Value is computed in the original image for hiding the secret information in to the original image. The pixel number and Correlation value is also used as the key for retrieving the embedded image from the receiver side. Pixel merging is done in the sender side by assigning a steganographic value of white and black pixels in original image based on the fuzzy rules by comparing the pixels present in the original and secret images. The information which is hided can be retrieved by using the same fuzzy rules. Experimental results show that the proposed method can hide and retrieve the secret and important messages in an image more effectively and accurately.