diff --git a/examples/gallery/images/image.py b/examples/gallery/images/image.py
index 49f0fe757fa..f3759ce4e5c 100644
--- a/examples/gallery/images/image.py
+++ b/examples/gallery/images/image.py
@@ -22,7 +22,10 @@
 # a rectangular border around it
 fig.image(
     imagefile="https://oceania.generic-mapping-tools.org/cache/needle.jpg",
-    position="g1/1+w8c+jCM",
+    position_type="mapcoords",
+    position=(1, 1),
+    width="8c",
+    anchor="CM",
     box=True,
 )
 
diff --git a/pygmt/src/image.py b/pygmt/src/image.py
index f6fdfa71950..70ebfc0d0ea 100644
--- a/pygmt/src/image.py
+++ b/pygmt/src/image.py
@@ -2,9 +2,10 @@
 image - Plot raster or EPS images.
 """
 
+from collections.abc import Sequence
 from typing import Literal
 
-from pygmt._typing import PathLike
+from pygmt._typing import AnchorCode, PathLike
 from pygmt.alias import Alias, AliasSystem
 from pygmt.clib import Session
 from pygmt.helpers import build_arg_list, fmt_docstring, kwargs_to_strings, use_alias
@@ -12,11 +13,21 @@
 
 
 @fmt_docstring
-@use_alias(D="position", G="bitcolor", M="monochrome", R="region", p="perspective")
+@use_alias(G="bitcolor", M="monochrome", R="region", p="perspective")
 @kwargs_to_strings(R="sequence", p="sequence")
-def image(
+def image(  # noqa: PLR0913
     self,
     imagefile: PathLike,
+    position: Sequence[str | float] | AnchorCode | None = None,
+    position_type: Literal[
+        "mapcoords", "boxcoords", "plotcoords", "inside", "outside"
+    ] = "plotcoords",
+    anchor: AnchorCode | None = None,
+    anchor_offset: Sequence[float | str] | None = None,
+    height: float | str | None = None,
+    width: float | str | None = None,
+    replicate: int | tuple[int, int] | None = None,
+    dpi: float | str | None = None,
     projection=None,
     box: Box | bool = False,
     verbose: Literal["quiet", "error", "warning", "timing", "info", "compat", "debug"]
@@ -28,12 +39,12 @@ def image(
     r"""
     Plot raster or EPS images.
 
-    Reads an Encapsulated PostScript file or a raster image file and plots
-    it on a map.
+    Reads an Encapsulated PostScript file or a raster image file and plot it on a map.
 
     Full GMT docs at :gmt-docs:`image.html`.
 
     {aliases}
+       - D = position/position_type/anchor/anchor_offset/width/height/replicate/dpi
        - F = box
        - J = projection
        - V = verbose
@@ -50,11 +61,56 @@ def image(
         then only EPS files are supported.
     {projection}
     {region}
-    position : str
-        [**g**\|\ **j**\|\ **J**\|\ **n**\|\ **x**]\ *refpoint*\ **+r**\ *dpi*\
-        **+w**\ [**-**]\ *width*\ [/*height*]\ [**+j**\ *justify*]\
-        [**+n**\ *nx*\ [/*ny*]]\ [**+o**\ *dx*\ [/*dy*]].
-        Set reference point on the map for the image.
+    position/position_type
+        Specify the reference point on the plot for the image. The method of defining
+        the the reference point is controlled by **position_type**, and the exact
+        location is set by **position**.
+
+        The **position_type** parameter can take one of the following values:
+
+        - ``"mapcoords"``: **position** is specified as (*longitude*, *latitude*) in map
+          coordinates. Example: (120, -45) places the reference point at 120°E, 45°S.
+        - ``"boxcoords"``: **position** is specified as (*nx*, *ny*) in normalized
+          coordinates, i.e., fractional values between 0 and 1 along the x- and y-axes.
+          Example: (0, 0) corresponds to the lower-left corner, and (1, 1) to the
+          upper-right corner of the plot bounding box.
+        - ``"plotcoords"``: **position** is specified as (*x*, *y*) in plot coordinates,
+          i.e., distances from the lower-left plot origin given in inches, centimeters,
+          or points. Example: ("1c", "2c") places the reference point 1 cm to the right
+          and 2 cm above the plot origin.
+        - ``"inside"`` or ``"outside"``: **position** is one of the nine
+          :doc:two-character justification codes </techref/justification_codes>,
+          indicating a specific location relative to the plot bounding box. Example:
+          ``"TL"`` places the reference point at the top-left corner, either inside or
+          outside the bounding box.
+    anchor
+        Specify the anchor point of the image, using one of the
+        :doc:`2-character justification codes </techref/justification_codes>`.
+        The default value depends on **position_type**.
+
+        - ``position_type="inside"``: **anchor** defaults to the same as **position**.
+        - ``position_type="outside"``: **anchor** defaults to the mirror opposite of
+          **position**.
+        - Otherwise, **anchor** defaults to ``"MC"`` (middle center).
+    anchor_offset
+        Specifies an offset for the anchor point as *offset* or
+        (*offset_x*, *offset_y*). If a single value *offset* is given, both *offset_x*
+        and *offset_y* are set to *offset*.
+    dpi
+        Specify dpi to set the dpi of the image in dots per inch, or append **c** to
+        indicate this is dots per cm.
+    replicate
+        *nx* or (*nx*, *ny*).
+        Replicate the (scaled) image *nx* times in the horizontal direction, and *ny*
+        times in the vertical direction. If a single integer *nx* is given, *ny* = *nx*.
+        [Default is (1, 1)].
+    width/height
+        Width (and height) of the image in plot coordinates (inches, cm, etc.). If
+        **height** (or **width**) is set to 0, then the original aspect ratio of the
+        image is maintained. If **width** (or **height**) is negative, the absolute
+        value is used to interpolate image to the device resolution using the PostScript
+        image operator. If neither dimensions nor dpi are set then revert to the default
+        dpi [:gmt-term:`GMT_GRAPHICS_DPU`].
     box
         Draw a background box behind the image. If set to ``True``, a simple rectangular
         box is drawn using :gmt-term:`MAP_FRAME_PEN`. To customize the box appearance,
@@ -76,9 +132,29 @@ def image(
     {perspective}
     {transparency}
     """
+
     self._activate_figure()
 
+    _dimension = (width, height) if height is not None else width
+
+    # Mapping position_type to GMT single-letter code.
+    _position_type = {
+        "mapcoords": "g",
+        "boxcoords": "n",
+        "plotcoords": "x",
+        "inside": "j",
+        "outside": "J",
+    }[position_type]
+
     aliasdict = AliasSystem(
+        D=[
+            Alias(position, name="position", sep="/", size=2, prefix=_position_type),
+            Alias(anchor, name="anchor", prefix="+j"),
+            Alias(anchor_offset, name="anchor_offset", prefix="+o", sep="/", size=2),
+            Alias(_dimension, name="width/height", prefix="+w"),
+            Alias(replicate, name="replicate", prefix="+n", sep="/", size=2),
+            Alias(dpi, name="dpi", prefix="+r"),
+        ],
         F=Alias(box, name="box"),
     ).add_common(
         J=projection,
diff --git a/pygmt/tests/test_image.py b/pygmt/tests/test_image.py
index e69a8d71938..d26aedd21ec 100644
--- a/pygmt/tests/test_image.py
+++ b/pygmt/tests/test_image.py
@@ -13,5 +13,11 @@ def test_image():
     Place images on map.
     """
     fig = Figure()
-    fig.image(imagefile="@circuit.png", position="x0/0+w2c", box=Box(pen="thin,blue"))
+    fig.image(
+        imagefile="@circuit.png",
+        position=(0, 0),
+        position_type="plotcoords",
+        width="2c",
+        box=Box(pen="thin,blue"),
+    )
     return fig