This invention proposes a thermoelectrical heat pump and internal heat exchanger as an alternative to the evaporator and condenser in conventional compression dryers. This thermoelectric heat pump includes one or more thermoelectric modules that are sandwiched between fine heat exchangers. Both the hot and cold sides are in direct contact with a fine heat exchanger. This allows for heating/cooling of the two fluids passing through the heat exchanger and provides heat recovery by using one fluid flow to preheat the other. This can be carried out in cross flow, counter flow, or concurrent flow configurations depending on the assembly of the components. The substitution of a compression heat pump by a thermoelectric heat pump leads to a tumble drying system that has no moving parts and longer system life. The lack of harmful refrigerants used in the system and silent operation make this technology a commercially viable product.