We present a new wavelet-based method for the denoising of event-related po
tentials (ERPs), employing techniques recently developed for the paradigm o
f deterministic chaotic systems. The denoising scheme has been constructed
to be appropriate for short and transient time sequences using circular sta
te space embedding. Its effectiveness was successfully tested on simulated
signals as well as on ERPs recorded from within a human brain. The method e
nables the study of individual ERPs against strong ongoing brain electrical
activity. (C) 2000 Elsevier Science B.V. All rights reserved.