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Due to the great innovation of display and information technology, the stringent requirement of data capacity is drastically increased in human life. This trend makes a significant impact on storage and communication evolution. The data compression technique is extensively applied to offer acceptable solution for this scenario. Such high resolution images have large size and computation time required to process such high quality images is more. Hence compression of images and video has become need of hour. An image compression technique is developed using both lossy and lossless image compression techniques. The lossy image compression technique used here is the 2D-DWT technique. The lossless image compression technique used here is the FELICS algorithm.