A system and method for compressing digital image data. An image may be divided into sub-regions. A maximum number of template codes may be determined for representing each sub-region, each template code uniquely identifying a template pattern in a dictionary. Each of a plurality of the sub-regions may be associated with a plurality of template patterns, each of which individually does not match the sub-region, but which when combined together more closely match the sub-region. A compressed data set may be generated for the image, in which each sub-region is represented by up to the maximum number of template codes uniquely identifying the associated plurality of template patterns. The up to the maximum number of template codes may be transmitted for each sub-region from the compressed data set, wherein the maximum number of template codes is a dynamic parameter adjustable based on the bandwidth available for transmitting.