Nonlinear delay differential system (NDDS) is a family of hyperchaotic systems, which has attracted much attention in the last years, especially in optics. The NDDS is often modeled by a time delay that occurs between the signals at the input and the output, and a nonlinearity introduced by a function F. This paper introduces the Ikeda system that is considered system of infinite dimension and proposed an image encryption scheme by dynamic block. The encryption algorithm divides the image on dynamic blocks depending on the previous block cipher. The algorithm diffuses the plain image with bitwise XOR between each block and sequence generated by Ikeda system after quantification. Statistical analysis of the proposed encryption scheme demonstrates that this cryptosystem is secure enough to resist the bruteforce attack, entropy attack, differential attack, chosenplaintext attack, known-plaintext attack and statistical attack. In addition, the cryptosystem has high sensitivity of key and large space key.