Combining a hyperspectral (HS) image and a multispectral (MS) image - an example of image fusion - can result in a spatially and spectrally high-resolution image. Despite the plethora of fusion algorithms in remote sensing, a necessary prerequisite, namely registration, is mostly ignored. This limits their application to well-registered images from the same source. In this article, we propose and validate an integrated registration and fusion approach (code available at https://github.com/zhouyuanzxcv/Hyperspectral). The registration algorithm minimizes a least-squares (LSQ) objective function with the point spread function (PSF) incorporated together with a nonrigid freeform transformation applied to the HS image and a rigid transformation applied to the MS image. It can handle images with significant scale differences and spatial distortion. The fusion algorithm takes the full high-resolution HS image as an unknown in the objective function. Assuming that the pixels lie on a low-dimensional manifold invariant to local linear transformations from spectral degradation, the fusion optimization problem leads to a closed-form solution. The method was validated on the Pavia University, Salton Sea, and the Mississippi Gulfport datasets. When the proposed registration algorithm is compared to its rigid variant and two mutual information-based methods, it has the best accuracy for both the nonrigid simulated dataset and the real dataset, with an average error less than 0.15 pixels for nonrigid distortion of maximum 1 HS pixel. When the fusion algorithm is compared with current state-of-the-art algorithms, it has the best performance on images with registration errors as well as on simulations that do not consider registration effects.