Imaging applications generate large volumes of data leading to challenges for transmission and storage. In this paper a novel hybrid image compression technique for efficient storage and delivery of data is proposed. It is based on decomposing the data using daubechies-4 wavelet in combination with the lifting scheme and entropy encoding. This scheme is concerned with the compression ratio, bits per pixel and peak signal to noise ratio. Experimental results illustrate that the proposed scheme is efficient and feasible in terms of compression ratio, bits per pixel and peak signal to noise ratio.