Fading a Photo into a background in coreldraw11 with no outline from original photo

Hi,

Can anyone help please, I am working in CorelDraw 11 and i have photograph that I need to fade (i have already done this using the transparency tool) and then i need it to blend into a coloured background so that it look as if it is all 1 image. i need the definite edges of the photo to "vanish" - Can anyone help please?

Thank you :)