For the problem of denoising images corrupted by mixed noise such as Additive White Gaussian Noise (AWGN) with Salt-and-Pepper Impulse Noise (SPIN) and Random-Valued Impulse Noise (RVIN), an improved image restoration algorithm on the basis of the existing weighted encoding method was proposed. The image priors about sparse representation and non-local similarity were integrated. Firstly, the sparse representation based on the dictionary was used to build a variational denoising model and a weighting factor was designed for data fidelity term to suppress impulse noise. Secondly, the method of non-local means was used to get an initialized denoised image and then a mask matrix was built to remove impulse noise points to get the good non-local similarity prior knowledge. Finally, the image sparsity prior and non-local similarity prior were integrated into the regularization of the variational model. The final denoised image was obtained by solving the variational model. The experimental results show that in different noise ratios, the Peak Signal-to-Noise Ratio (PSNR) of the proposed algorithm increased 1.7 dB than that of fuzzy weighted non-local means filter, and the Feature Similarity Index (FSIM) increased 0.06. Compared with weighted encoding method, the PSNR increased 0.64 dB, and the FSIM increased 0.03. The proposed method has better recovery performance especially for the texture strong images and can retain real information of the image.