An algorithm is proposed for improving Servetto et al.'s method of morpholo
gical representation of wavelet data (MRWD), which is among the most effici
ent wavelet-based image compression algorithms. In MRWD, morphological dila
tion is used to capture and encode the arbitrarily shaped clusters of signi
ficant coefficients within each subband and high compression is achieved. B
ut there are still several deficiencies for rectification in MRWD. An effic
ient image compression algorithm is proposed, in which, for each subband, m
orphological dilation is first used to extract and encode the clustered sig
nificant coefficients, and the remaining space is encoded in an efficient w
ay. Instead of encoding the large number of zeros one by one, only the smal
l number of remaining significant coefficients and their positional informa
tion are encoded. Experimental results show that this improvement is very e
ffective, especially for images with large and relatively smooth regions.