The traditional approach to image encryption faces significant challenges and issues, including inadequate safety, image degradation, low latency, low-key sensitivity, diffusion, and strong correlation. To address these shortcomings, a new image encryption algorithm is proposed in this work. The algorithm uses a combination of Discrete Cosine Transform (DCT) and Arnold transform along with chaotic scrambling to enhance the image security. The two-level encryption approach performs transformations in the position of each pixel without changing their values or statistical features. The proposed algorithm is evaluated and shown to offer several advantages, including robust performance, statistical efficacy, high key sensitivity, picture security, and real-time performance. Overall, the proposed algorithm represents a significant improvement over the traditional approach to image encryption.