In this paper, the wavelet transform based lossless image compression algorithm is proposed. The proposed algorithm transforms the input image using 9/7 ICFB and S+P filter, and eliminates the spacious correlation of the subband coefficients, applying the context modeling predictive technique based on the multi-resolution structure and the feedback of the prediction error. The prediction context exploits the subordination and direction property of the different level subband in the vertical, horizontal, and diagonal subband coefficients. The simulation result of the high frequency images such as PEPPERS, BOAT, and AIRPLANE shows that the proposed algorithm efficiently predicts the edge area of each multi-resolution subband.