In this work, the correlation-based image localization problem is targeted toward implementation for real-time operation on high-resolution images. The main contribution resides in a global approach to the two-dimensional correlation problem which concurrently considers the algorithm, the system architecture, and its implementation. Analyzing and studying the alternatives concerning algorithm specification, VLSI architecture, and system architecture at different levels of the design phase, a scalable multiprocessor system, based on multiple instances of identical modules, is derived which achieves a real-time image correlation performance exceeding that of currently available solutions by an order of magnitude concerning frame-rate and input image resolution. As a result, the relevance of image correlation traditionally limited to the image processing domain is now expanded into applied machine vision applications. Addressing packaging and reusability aspects, an MCM implementation of the relevant system components is presented.