Biometric template security and privacy issues are critical in biometric authentication systems and require special attention. However, remote biometric authentication systems demand wider array of measures for maximum protection. This paper proposes a remote cancelable palmprint authentication protocol based on multi-directional two-dimensional PalmPhasor-fusion. The main contribution is three-fold. First, with a transposition direction selection mechanism, multi-directional two-dimensional PalmPhasor (MTDPP) improves the accuracy performance of two-dimensional PalmPhasor. Second, we provide the theoretical analysis of the effect of transposition on the accuracy performance of two-dimensional PalmPhasor, and hence establish an effective transposition direction range for the proposed MTDPP. Third, according to our analysis, the existing remote palmprint authentication system does not satisfy non-invertibility criterion of secure template protection and is vulnerable to interception. Besides, secret message embedding as a countermeasure for database attacks deteriorates accuracy performance and causes inconvenience in updating authenticator. The proposed protocol uses multi-directional two-dimensional PalmPhasor-fusion, one-time random number encrypted with asymmetric cryptography and encrypted hash codes of MTDPP to address the problems. Copyright © 2013 John Wiley & Sons, Ltd.