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I have an RGB ortho rectified Image and I have another grid data with Elevation values.

However, an image with only three bands does not give a good classification of landcover, so it is important to add additional information e.g. pattern or elevation data from another dataset.

I only have access to ArcGIS software so I wish to know how I can do this in ArcGIS for Desktop?

The following Image will be the Input of classification.

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Are you trying to merge the DEM with the imagery as a fourth band? I don't think elevation is a valid dataset for land use classification. However, as you indicated, the pattern of the land derived from the DEM might be better. You may want to look into Composite Bands. That will add your land pattern file as a new band to your imagery. The composite bands is available to all license levels of ArcGIS.

The ESRI documentation states that the tool:

Creates a single raster dataset from multiple bands and can also create a raster dataset using only a subset of bands.

Once you have that, you can use the Image Classification toolbar.

The Image Classification toolbar provides a user-friendly environment for creating training samples and signature files for supervised classification. It also serves as a centralized location for performing both supervised classification and unsupervised classification.

However, this is only available with the Spatial Analyst extension.

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