Eractal coding is image compression techniques uy ing one of image characteristics selftraneforrnabiliby. In fractal image coding, the encoding process is to ses lect the domain block similar to a range block. The reconstructed image quality of fractal image coding depends on similitude between a range block and the selected domain block. Domain block estimating function is used for selecting the domain block slmi1ar to a range blocks, in fhr:t, the errer of the reconstructed image adds up the generated error in encoding process and