The invention provides a method and an arrangement for detecting moving point-targets within a large set of noisy measurements. The method is based on Bayesian model selection where the measurements containing targets are modeled with their physical trajectories and the non-target measurements are modeled with the statistical distribution of measurements containing no targets. An a posteriori probability density function is utilized together with a optimization algorithm specifically designed for this problem. Advantages of the invention involve a numerically efficient formulation of the a posteriori probability density, combined with the optimization algorithm. The main applications of the invention are in detecting moving targets within e.g., radar, sonar, lidar and telescopic measurements. The method is also applicable for multi-instrument data fusion.