Many existing migration schemes cannot simultaneously handle the two m
ost important problems of migration: imaging of steep dips and imaging
in media with arbitrary velocity variations in all directions. For ex
ample, phase-shift (omega, k) migration is accurate for nearly all dip
s but it is limited to very simple velocity functions. On the other ha
nd, finite-difference schemes based on one-way wave equations consider
arbitrary velocity functions but they attenuate steeply dipping event
s. We propose a new hybrid migration method, named ''Fourier finite-di
fference migration,'' wherein the downward-continuation operator is sp
lit into two downward-continuation operators: one operator is a phase-
shift operator for a chosen constant background velocity, and the othe
r operator is an optimized finite-difference operator for the varying
component of the velocity function. If there is no variation of veloci
ty, then only a phase-shift operator will be applied automatically. On
the other hand, if there is a strong variation of velocity, then the
phase-shift component is suppressed and the optimized finite-differenc
e operator will be fully applied. The cascaded application of phase-sh
ift and finite-difference operators shows a better maximum dip-angle b
ehavior than the split-step Fourier migration operator. Depending on t
he macro velocity model, the Fourier finite-difference migration even
shows an improved performance compared to conventional finite-differen
ce migration with one downward-continuation step. Finite-difference mi
gration with two downward-continuation steps is required to reach the
same migration performance, but this is achieved with about 20 percent
higher computation costs. The new cascaded operator of the Fourier fi
nite-difference migration can be applied to arbitrary velocity functio
ns and allows an accurate migration of steeply dipping reflectors in a
complex macro velocity model. The dip limitation of the cascaded oper
ator depends on the variation of the velocity field and, hence, is vel
ocity-adaptive.