According to embodiments illustrated herein there is provided a method of image compression. The method includes generating a modified image based on a compression of an image. The method further includes generating a first residual layer and a second residual layer based on a comparison of the modified image and the image. The method further includes filtering a set of pixels from the first residual layer and the second residual layer. The method further includes compressing the filtered first residual layer and the filtered second residual layer to generate a compressed first residual layer and a compressed second residual layer. Additionally, the method includes generating a second compressed image based on the modified image, the compressed first residual image and the compressed second residual image.