This paper presents a new approach for denoising Partial Discharge (PD) signals using a hybrid algorithm combining the adaptive decomposition technique with Entropy measures and Group-Sparse Total Variation (GSTV). Initially, the Empirical Mode Decomposition (EMD) technique is applied to decompose a noisy sensor data into the Intrinsic Mode Functions (IMFs), Mutual Information (MI) analysis between IMFs is carried out to set the mode length . Then, the Variational Mode Decomposition (VMD) technique decomposes a noisy sensor data into number of Band Limited IMFs (BLIMFs).