An optimized method and system for entropy coding is described. The system may include an input module to receive a digital image, a Discrete Cosine Transform (DCT) module to obtain a plurality of DCT coefficients associated with the digital image, a statistics generator to generate statistics associated with the plurality of DCT coefficients, a placement module to store the generated statistics in the plurality of DCT coefficients and entropy coder to generate uniquely decodable (UD) codes for the plurality of DCT coefficients. The entropy coder may utilize the statistics stored in the plurality of DCT coefficients.