In this paper we have proposed an efficient coding algorithm using directional filtering. First an image is transformed by using DCT which has better energy compaction and then the transformed image is divided into a low frequency component and several high frequency components. The transformed coefficients of each parts are transmitted respectively by using huffman code and these are transformed inversely at receiver. For the directional components total edge images are reconstructed at zero crossing points. We are able to reduce the amount of data by getting of complex component and making directional angles 90. As a results, this proposed method is better than that of Kunt in respect of processing time and memories. We have 38dB of image quality with objective measurement of PSNR and 0.26bpp of compression ratio which is acceptable.