In recent years, a new method to measure transverse blood flow based on the decorrelation of the radio-frequency (RF) signals, has been developed. Transverse blood flow estimation may be influenced by noise. In this paper, we investigated a new correlation-based method for noise correction. The decorrelation characteristics of transverse blood flow using an intravascular ultrasound (US) or IVUS array catheter were studied by means of computer modeling. Blood was simulated as a collection of randomly located point scatterers; moving this scattering medium transversely across the acoustical beam represented flow. Parabolic blood flow was simulated. Additive noise was added to the RF signals at a given signal-to-noise ratio (SNR). Next, a new method to dynamically estimate and suppress the decorrelation due to noise is presented. The decorrelation due to noise was estimated from the correlation coefficients from flowing blood obtained at increasing time lags. The correlation graphs are corrected for the decorrelation due to noise, leaving the decorrelation due to blood flow. The method shows promise to estimate and correct the correlation coefficients for noise.