Real-time image georeferencing is required to generate spatial information rapidly from the image sequences acquired by multi-sensor systems. To complement the performance of position/attitude sensors and process in real-time, we should employ on-line aerial triangulation based on a sequential estimation algorithm. In this study, we thus attempt to derive an efficient on-line aerial triangulation algorithm for real-time georeferencing of image sequences. We implemented on-line aerial triangulation using the existing Given transformation update algorithm, and a new inverse normal matrix update algorithm based on observation classification, respectively. To compare the performance of two algorithms in terms of the accuracy and processing time, we applied these algorithms to simulated airborne multi-sensory data. The experimental results indicate that the inverse normal matrix update algorithm shows 40 % higher accuracy in the estimated ground point coordinates and eight times faster processing speed comparing to the Given transformation update algorithm. Therefore, the inverse normal matrix update algorithm is more appropriate for the real-time image georeferencing.