At first glance, it appears to be an infection of Lymphocystis.
No known cure if it is Lymphocystis, but Iââ"šÂ¬Ã¢"žÂ¢ve known the Neon Blue Goby (
Elacatinus oceanops) to actually eat it off of some fishes.
What often allows this virus to take hold is stress on the fish. Stress can come in terms of less than optimum water quality, stress from capture, stress from acclimation (or the wrong acclimation procedure), poor or reduced diet (or not eating for a week or more along the transfer lines), or any combo of these.
To help it along, give it all the best care -- best water; best food; reduced stress from any outside source.
It can be contagious, but most likely the contracting fish is stressed too, or that there is just too much of the disease for the contracting fish to resist it. Good to keep the fish in quarantine until you optimize the environment and diet.
This is a photo of another fish with the disease I am writing about:
http://www.wetwebmedia.com/viraldislymph.htm
Good luck!