Picture Merge? Collage?

[Foto-Latino]

Hi All:
First Time posting to the forum so please forgive me if this has been asked before.
I did look through the FAQ but couldn't quite find what I was looking for, perhaps because I am not sure of the proper terminology.
I have attached a screen copy of the effect I want to achieve.
Basically I have a picture of a scene/building from the past and I want to merge the two into one picture with the same scenery is shown on the edges and the scene from the past, faded In towards the middle section of the image.
Can this be accomplished with Layers? or Maybe a Collage? or is it something else?
Thanks in advance.
Maurice

[Cassel]

As you said, layers would do the trick. Place one photo and add the other one as a new layer and align them. You can then apply effects if you want, to one or both layers. You might need to resize one of them to match, but it would be very feasible.

[teknisyan]

I'd go for Cassel's suggestion and if I'm not mistaken this is also known as photo time lapse. In your case you are only using 3 photos, while some of the photo timelapse that I've saw uses atleast a thousands photos taken either for just a whole day or a year. You can checkout his One year in one image at http://eirikso.com/2011/01/04/one-year-in-one-image/ or this one by one of the commenter http://www.flickr.com/photos/agrinberg/2370540632/