The hyperspectral image compression scheme is a trade-off between the limited hardware resources of the on-board platform and the ever-growing resolution of the optical instruments. Predictive coding attracts researchers due to its low computational complexity and moderate memory requirements. We propose a near-lossless prediction-based compression scheme that removes spatial and spectral redundant information, thereby significantly reducing the size of hyperspectral images. This scheme

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... the target pixel's value via a linear combination of previous pixels. The weight matrix of the predictor is iteratively updated using a recursive least squares filter with a loop quantizer. The optimal number of bands for prediction was analyzed experimentally. The results indicate that the proposed scheme outperforms state-of-the-art compression methods in terms of the compression ratio and quality retrieval.