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A novel fractal image coding algorithm based on domain blocks sorting strategies and modified no search scheme is proposed in this paper. On one hand, in order to improve the encoding time, a modified no search (MNS) scheme is adopted. Firstly, the image is divided into blocks of different size utilizing an adaptive quadtree partition method. Secondly, one finds the location of the best matching domain block using the MNS scheme for the range blocks, whose sizes are larger than the preset minimum value. Thirdly, the types of the range block and domain block are computed employing the proposed approach, and then the corresponding computation of mean square error (MSE) is determined. The computation of the MSE is reduced and the encoding phase speeds up. On the other hand, the range blocks with the minimal sizes are encoded applying the proposed domain blocks sorting (DBS) method. Contrast experiment results show that the proposed algorithm can obtain good quality of the reconstructed images and shorten the encoding time significantly.