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We propose a new adaptive filtering framework for local image registration, which compensates for the effect of local distortions/displacements without explicitly estimating a distortion/displacement field. To this effect, we formulate local image registration as a two-dimensional (2-D) system identification problem with spatially varying system parameters. We utilize a 2-D adaptive filtering framework to identify the locally varying system parameters, where a new block adaptive filtering scheme is introduced. We discuss the conditions under which the adaptive filter coefficients conform to a local displacement vector at each pixel. Experimental results demonstrate that the proposed 2-D adaptive filtering framework is very successful in modeling and compensation of both local distortions, such as Stirmark attacks, and local motion, such as in the presence of a parallax field. In particular, we show that the proposed method can provide image registration to: a) enable reliable detection of watermarks following a Stirmark attack in nonblind detection scenarios, b) compensate for lens distortions, and c) align multiview images with nonparametric local motion