Automatic Vehicle Number Plate Recognition (AVNPR) system is an image processing technology in computer vision which captures the image of the vehicle and recognizes its number plate. Currently, the security and management of transportation system becomes an important key in controlled place such as campus area. With an increased number of vehicles, there is a need for vehicle recognition mechanism that is effective, affordable and efficient. The objective of this paper is to propose an efficient automatic vehicle identification system by recognizing the vehicle plate number. The system will be installed at the main entrance of POLIMAS to ensure that only the authorized vehicles can automatically enter the campus area. Once the vehicle is detected by the input sensors, AVNPR system will capture the image of vehicle plate number. An image is then extracted and investigated character segmentation by using optical character recognition (OCR). The method used for detection of a plate number is by preprocessing of the image and using a combination of Sobel edge detection and Laplacian edge detection techniques. Bounding Box technique is used to find the number plate and character segmentation. For character recognition, OCR method is used by using template matching to compare the segmented image with the template. The system is sustainable as the camera will only be switched on when a car is present. The propose system successfully detects and recognizes the vehicle number plate on real images. This system can also be used for security and traffic control.