The invention is related to a method for compressing images. The proposed method comprises associating perceptual importance parameters with pixels of the image, applying a transform on the image, partitioning the transformed image into code blocks and encoding coefficient bits of a given code block together from a most significant bit plane towards a least significant bit plane, wherein encoding of at least one coefficient is truncated at a truncation bit plane depending on the perceptual importance parameter associated with the pixel to which said code block coefficient corresponds. Truncating encoding of coefficients in dependency on the perceptual importance of the pixel associated with the coefficient allows for truncating coefficients corresponding to perceptually less important pixels at more significant bit planes. So, the overall perceptual quality of the compressed image is enhanced.