A new image coding technique has been proposed based on the wavelet transform. To achieve lower ceding rates and good qualities in reconstructed images, some of wavelet coefficients were removed by thresholding and quantized in accordance with the sensitivity of the human visual system(HVS). For each block of subimages in wavelet transform domain, block thresholding scheme has been used to remove the unimportant wavelet coefficients according to the frequency characteristic and statistical property of wavelet coefficients. The location information of quantized blocks and removed blocks were encoded using run-length coder which is effective for the exponential distribution. Quantized coefficients were encoded using variable length coder which matches well to their distribution. Simulation results show that the reconstructed images maintain high quality with the low bit rate, below 1.0 bits per pel.