New very low bit rate segmentation image coding technique is proposed by segmenting image into textually homogeneous regions. Regions are classified into on of three perceptually distinct texture classes (perceived constant intensity (class I), smooth texture (class II), and rough texture (class III) using the human Visual System (HVS) and the fractals. To design very low bit rate image coder, it is very important to determine nonoverlap and overlap segmentation method for each texture class. Good quality reconstructed images are obtained with about 0.10 to 0.21 bit per pixel (bpp) for many different types of imagery.