Classifier fusion is an efficient strategy to improve the classification performance for the complex pattern recognition problem. In practice, the multiple classifiers to combine can have different reliabilities and the proper reliability evaluation plays an important role in the fusion process for getting the best classification performance. We propose a new method for classifier fusion with contextual reliability evaluation (CF-CRE) based on inner reliability and relative reliability concepts. The inner reliability, represented by a matrix, characterizes the probability of the object belonging to one class when it is classified to another class. The elements of this matrix are estimated from the K-nearest neighbors of the object. A cautious discounting rule is developed under belief functions framework to revise the classification result according to the inner reliability. The relative reliability is evaluated based on a new incompatibility measure which allows to reduce the level of conflict between the classifiers by applying the classical evidence discounting rule to each classifier before their combination. The inner reliability and relative reliability capture different aspects of the classification reliability. The discounted classification results are combined with Dempster-Shafer's rule for the final class decision making support. The performance of CF-CRE have been evaluated and compared with those of main classical fusion methods using real data sets. The experimental results show that CF-CRE can produce substantially higher accuracy than other fusion methods in general. Moreover, CF-CRE is robust to the changes of the number of nearest neighbors chosen for estimating the reliability matrix, which is appealing for the applications.