Image compression methods which are capable of delivering high reconstruction quality are of great demand in research. Analysis of medical images is very important and crucial in diagnosis .However in medical images, only a portion of it is useful for diagnosis so there is the need to implement region based compression method for these images. This paper proposes one such region based algorithm with only a single approach which can be applied in both lossy and lossless modes. Experiments were

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... nducted on MR brain images and the results were showing improvement with respect to traditional approaches.