The Python Image Library (PIL) lets you handle images. Here is an example that loads a small image and a large image, and pastes the smaller image on top of the larger one ...
# paste a smaller image on top of another image
# using the Python Image Library (PIL) from ...
# http://www.pythonware.com/products/pil/index.htm
# tested with Python 2.6.5
from PIL import Image
fname1 = "Duck.jpg"
fname2 = "french_flag.jpg"
img1 = Image.open(fname1)
img2 = Image.open(fname2)
# test
print(img1.size)
print(img2.size)
# paste img2 onto img1 at coordinates x=130 y=50
# the upper left corner(ULC) of img2 will at (x, y)
img1.paste(img2, (130, 50))
# save the modified picture
img1.save("french_duck.jpg")
# use module webbrowser to show image file
import webbrowser
webbrowser.open("french_duck.jpg")