A system and method of selecting a predefined Huffman dictionary from a bank of dictionaries. The dictionary selection mechanism of the present invention effectively breaks the built-in tradeoff between compression ratio and compression rate for both hardware and software compression implementations. A mechanism is provided for automatically creating a predefined Huffman dictionary for a set of input files. The dictionary selection mechanism achieves high compression rate and ratio leveraging predefined Huffman dictionaries and provides a mechanism for dynamically speculating which predefined dictionary to select per input data block, thereby achieving close to a dynamic Huffman ratio at a static Huffman rate. In addition, a feedback loop is used to monitor the ongoing performance of the preset currently selected for use by the hardware accelerator. If the current preset is not optimal it is replaced with an optimal preset.