Various embodiments of the present invention provide a compression method and system that compresses received data by first denoising the data and then losslessly compressing the denoised data. Denoising removes high entropy features of the data to produce lower entropy, denoised data that can be efficiently compressed by a lossless compression technique. One embodiment of the invention is a universal lossy compression method obtained by cascading a denoising technique with a universal lossless compression method. Alternative embodiments include methods obtained by cascading a denoising technique with one or more lossy or lossless compression methods.