Orthogonal and biorthogonal wavelets became very popular image processing tools but exhibit major drawbacks, namely a poor resolution in orientation and the lack of translation invariance due to aliasing between subbands. Alternative multiresolution transforms which specifically solve these drawbacks have been proposed. These transforms are generally overcomplete and consequently offer large degrees of freedom in their design. At the same time their optimization gets a challenging task. We propose here the construction of log-Gabor wavelet transforms which allow exact reconstruction and strengthen the excellent mathematical properties of the Gabor filters. Two major improvements on the previous Gabor wavelet schemes are proposed: first the highest frequency bands are covered by narrowly localized oriented filters. Secondly, the set of filters cover uniformly the Fourier domain including the highest and lowest frequencies and thus exact reconstruction is achieved using the same filters in both the direct and the inverse transforms (which means that the transform is self-invertible). The present transform not only achieves important mathematical properties, it also follows as much as possible the knowledge on the receptive field properties of the simple cells of the Primary Visual Cortex (V1) and on the statistics of natural images. Compared to the state of the art, the log-Gabor wavelets show excellent ability to segregate the image information (e.g. the contrast edges) from spatially incoherent Gaussian noise by hard thresholding, and then to represent image features through a reduced set of large magnitude coefficients. Such characteristics make the transform a promising tool for processing natural images.