With the development of internet, digital media can be manipulated, reproduced, and distributed conveniently over networks. However, illegal copy, transmission and distribution of digital media become an important security issue. In this paper, we propose a high-capacity and robustness method based on discrete wavelet transforms(DWT) and optimal discrete cosine transforms(DCT). We present two approaches, they are: DWT-ODCT(high-capacity and robust image watermarking algorithm based on DWT and optimal DCT), and(P-DWT-ODCT) high-capacity and robust image watermarking algorithm based on DWT and optimal DCT by watermark preprocessing. The watermark image is preprocessed by halftone and quad tree techniques, and the position information about the content is extracted as the actual embedded value. The cover image is transformed by DWT and optimal DCT, which provides high imperceptibility and the least image distortion. Watermark bits are not directly inserted into the frequency coefficient, but embedded by modifying the coefficient according to some rules. With this method, regardless of the approach used, our study are higher capacity and robustness than the existing schemes. The watermark extraction produces high image quality after a variety of attacks.