A system and method for embedding information within an input image utilizes specific type pixel blocks of the input image to selectively embed the information into the input image. The information is embedded into the input image by replacing the specific type pixel blocks with predefined dot shape blocks, which represent the information to be embedded. In an embodiment, the specific type pixel blocks are minority pixel blocks, which include a majority of pixels that contrast with the image background. The use of minority pixel blocks makes the embedded information less perceptible in the final image. In an embodiment, error diffusion is performed on a pixel block by pixel block basis so that the final image with the embedded information is of high quality and more suitable for printing on laser printers.