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Urban areas are the most dynamic region on earth. Their size has been constantly increased during the past and this process will go on in the future. Since there is no standard policy and guidelines for construction of buildings and urban planning, cities tend to have irregular growth. Many cities in the world face the problem of urban sprawl in its suburbs. So issues of urban sprawl need to be settled with the help of technologies such as satellite remote sensing and automated change detection. This paper presents a wavelet based post classification change detection technique that is applied to 1996 and 2004 MSS images of Madurai City, South India to determine the urban growth. The classification stage of the technique uses coilflet wavelet filter to correlate with the MSS land cover images of Madurai city to derive texture feature vector and this feature vector is inputted to a fuzzy-c means classifier, an unsupervised classification procedure. The post classification change detection technique is employed for identifying the newly developed urban fringe of the study area. The error matrix analysis is used to assess the accuracy of the change map. The performance of the presented technique is found superior than that of classical change detection methods such as image differencing, change vector analysis and principal component analysis.