Methods and systems for watermarking of digital images are presented. In one aspect, a method of embedding information in a digital image includes transforming the digital image to a set of coefficient blocks having coefficients in a frequency domain, embedding a watermark-indicator in one or more of the coefficient blocks, and embedding a watermark in one or more watermark blocks that have a predetermined number of coefficient blocks. The embedded watermark is substantially invisible in the output watermarked digital image. Another aspect is a method of extracting a watermark from a digital image that includes transforming a digital image to a coefficient matrix, determining if the digital image is watermarked based on a predetermined watermark-indicator, and retrieving a watermark from a projected watermark block of a projected watermark block distribution.