This paper proposes a denoising algorithm called truncated sparse decomposition(TSD) algorithm,which combines the advantage of the sparse decomposition with that of the minimum energy model truncation operation.Experimental results on two real chaotic signals show that the TSD algorithm outperforms the recently reported denoising algorithms- non-negative sparse coding and singular value decomposition based method. This paper proposes a denoising algorithm called truncated sparse decomposition (TSD) algorithm, which combines the advantage of the sparse decomposition with that of the minimum energy model truncation operation. Experimental results on two real chaotic signals show that the TSD algorithm outperforms the recently reported denoising algorithms- non-negative sparse coding and singular value decomposition based method.