The system obtains packets-to-be-compressed at a compressor at a transmitter that transmits packets through a channel to a decompressor at a receiver. It also obtains cross-layer information regarding a state of the channel from lower-layer network entities in the transmitter. The system then determines whether to request feedback from the decompressor based on a predetermined policy, and requests and receives feedback from the decompressor based on the determination. The system uses the cross-layer information and any received feedback to estimate a state of the channel and the decompressor. The system also determines a compression level based on a compression policy and the estimations for the state of the channel and the decompressor. The system generates the packets-to-be-transmitted by selectively compressing the headers of the packets-to-be-compressed based on the determined compression level.