Multispectral images consist of multiple channels, each containing data acquired from a different band within the frequency spectrum. Since most objects emit or reflect energy over a large spectral bandwidth, there usually exists a significant correlation between channels. Due to often harsh imaging environments, the acquired data may be degraded by both blur and noise. Simply applying a monochromatic restoration algorithm to each frequency band ignores the cross-channel correlation present within a multispectral image. A Gibbs prior is proposed for multispectral data modeled as a Markov random field, containing both spatial and spectral cliques. Spatial components of the model use a nonlinear operator to preserve discontinuities within each frequency band, while spectral components incorporate nonstationary cross-channel correlations. The multispectral model is used in a Bayesian algorithm for the restoration of color images, in which the resulting nonlinear estimates are shown to be quantitatively and visually superior to linear estimates generated by multichannel Wiener and least squares restoration.