This paper mainly concentrate on Noise Cancellation methodology for bio-signals. In this paper we have smoothened the Wavelet based signal coefficient and adapted to the MSE using RLS Algorithm. We have applied the Noisy ECG to After reconstruction model (ARM) and Before reconstruction model (BRM) and is implemented and tested. The proposed model combines the advantage of Wavelet Transform (co-efficient smoothening) and Adaptive Filter. This new proposed model performed better and faster. This find many application in the filed of noise elimination.