This paper presents a color image noise removal technique that employs a cellular neural network (CNN) based on hybrid linear matrix inequality (LMI) and particle swarm optimization (PSO). For designing templates of CNN, the Lyapunov stability theorem is applied to derive the criterion for the uniqueness and global asymptotic stability of the CNN’s equilibrium point. The template design is characterized as a standard LMI problem, and the parameters of templates are optimized by PSO. The input templates are obtained by employing the CNN’s property of saturation nonlinearity, which can be used to eliminate noise from arbitrary corrupted images. The demonstrated examples are compared favorably with other available methods, which illustrate the better performance of the proposed LMI-PSO-CNN methodology.