A method for compressing an image includes decomposing the image into one or more regions. A region of the image is selected to be evaluated. The selected region is transformed and quantized if the region does not meet a predetermined compression acceptability criteria. The predetermined compression acceptability criteria may include a specific bit rate, a specific image quality, or combinations thereof. If the region does not meet the predetermined compression acceptability criteria after the region has been transformed and quantized, then the transformation and quantization settings are adjusted and the region is transformed and quantized using the adjusted settings. The region is then encoded when the predetermined compression acceptability criteria has been reached. The encoding may include additional compression stages.