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The easiest way is using a feathered selection.
Open one of the images which you want to blend (we'll call it Layer1), and then paste the other on top of it as a new layer (Layer2).
Making sure that Layer2 is 'in focus' in the Layer panel, use one of the selection tools (it depends what shape you want the blend to take) and drag over part of the upper image.
Now go Selections > Modify > Feather and set to a relatively high number (the higher the number, the easier it is to refine the fade).
Now press delete.
You will see that, depending upon how much of a feather you set, some of Layer2 will disappear, and the lower image will start to become visible. Keep pressing delete until you have the desired effect.
Hope this helps.
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