Combine layers with antialiasing

[Sketcher]

Here are my two layers (18 x 18 pixels).

 

 

 

Is there a way to paste/combine etc. the two layers above similar to the effect of adding text as shown below (i.e. soft edges)?

 

 

Thanks, Sketcher

[BoltBait]

Try one of the feather plugins in my plugin pack on the arrow layer before merging layers.

[AndrewDavid]

@Sketcher 

Try the built in "Pixelate" Distort effect.

Ensure there is nothing but the green arrow on the layer

Merge with a black layer underneath.

 

Edited February 1, 2020 by AndrewDavid
Removed upload