Multiscale geometric analysis (MGA) is not only characterized by multi-resolution, time-frequency localization, multidirectionality and anisotropy, but also outdoes the limitations of wavelet transform in representing high-dimensional singular data such as edges and contours. Therefore, researchers have been exploring new MGA-based image compression standards rather than the JPEG2000 standard. However, due to the difference in terms of the data structure, redundancy and decorrelation between wavelet and MGA, as well as the complexity of the coding scheme, so far, no definitive researches have been reported on the MGA-based image coding schemes. In addressing this problem, this paper proposes an image data compression approach using the hidden Markov model (HMM)/pulse-coupled neural network (PCNN) model in the contourlet domain. First, a sparse decomposition of an image was performed using a contourlet transform to obtain the coefficients that show the multiscale and multidirectional characteristics. An HMM was then adopted to establish links between coefficients in neighboring subbands of different levels and directions. An Expectation-Maximization (EM) algorithm was also adopted in training the HMM in order to estimate the state probability matrix, which maintains the same structure of the contourlet decomposition coefficients. In addition, each state probability can be classified by the PCNN based on the state probability distribution. Experimental results show that the HMM/PCNN-contourlet model proposed in this paper leads to better compression performance and offer a more flexible encoding scheme.