The dynamic positioning of sensors, which exploit the mechanical and physiological changes in tissues, can significantly increase the performance in characterization of tumors. Here, we disclose the Optical Dynamic Imaging (ODI) System for tumor characterization. ODI System estimates size, depth, elastic modulus and optical properties of embedded objects. The ODI System consists of a tactile imaging sensor (TIS), and a near infrared diffuse spectral imaging. To obtain mechanical properties of the target, we compress the region of interest with the probe, then the light from the probe is scattered and captured by the camera as a tactile image. On the other hand, using a light source and the camera as a detector, we obtain the diffuse spectral images. From these images, we compute the absorption coefficient of the embedded tumor phantom. We move the source-detector simultaneously and collect optical information. We termed this maneuver as dynamic positioning. Optical Dynamic Imaging System also provides position and orientation of the light source and the detectors. The combination of the absorption coefficient and tactile data along with location information improves the size, depth, and elastic modulus estimation.