The invention relates to a method and apparatus for image compression, particularly to an improved block-coding apparatus and method for image compression. Image compression systems such as JPEG and JPEG2000 are known and popular standards for image compression. Many of the advantageous features of JPEG2000 derive from the use of the EBCOT algorithm (Embedded Block-Coding with Optimized Truncation). One drawback of the JPEG2000 standards is computational complexity. This application discloses a relatively fast block-coding algorithm, particularly as compared with the standard JPEG2000 EBCOT algorithm. Computational complexity is reduced.