Total variation (TV) regularization is a classical tool for image denoising, but its convex $\ell_1$ formulation often leads to staircase artifacts and loss of contrast. To address these issues, we introduce the Transformed $\ell_1$ (TL1) regularizer applied to image gradients. In particular, we develop a TL1-regularized denoising model and solve it using the Alternating Direction Method of Multipliers (ADMM), featuring a closed-form TL1 proximal operator and an FFT-based image update under periodic boundary conditions. Experimental results demonstrate that our approach achieves superior denoising performance, effectively suppressing noise while preserving edges and enhancing image contrast.