This paper proposes a block-based high capacity steganography technique for digital images. The cover image is decomposed into blocks of equal size and the largest pixel of each block is found to embed the secret data bits and also the smallest pixel of each block is used for embedding to enhance the capacity. Embedding of secret data is performed using the concept that the pixel of a cover image has only two states — even and odd. Multilevel approach is also combined in the proposed technique to achieve high embedding capacity. In order to make the proposed technique more secure, a key is generated using embedding levels, block size, pixel embedding way, encryption parameters, and starting blocks of each embedding levels. Embedding capacity and visual quality of stego images generated by the proposed steganography technique are higher than the existing techniques. Steganalysis tests have been performed to show the un-detectability and imperceptibility of the proposed technique.