Abstract:A novel wavelet-based vector quantization (VQ) algorithm is presented in this paper. In this algorithm, first, 9/7 biorthogonal wavelet transform decomposes the original image, then the correlation of the three direction’s wavelet coefficients is used to construct the band-cross vector. Therefore, the high coding efficiercy is obtained. In addition, a new VQ technology is used in this algorithm to improve the coding efficiency and the quality of the code-book. The experimental results show that this coding scheme, no entropy-coding, can get a reconstruction quality(PSNR>32dB) at a very low bit rate(0.142 bpp) with high feasibility.