The present invention provides a method and system for lossless manipulation of a data file size. The method comprises receiving the data file in an original format (205) and performing an action (210) of compression (215) or decompression (220) on the data file. The data file can be compressed or decompressed using a transliteration procedure. The present invention also provides a method for compressing or decompressing a data file using an abbreviation procedure, as well as a referencing procedure. A method for compressing the data file using any combination of the transliteration procedure, the abbreviation procedure and the referencing procedure is provided. The present invention further provides a system for performing compression or decompression on a data file based on the transliteration procedure, the abbreviation procedure and the referencing procedure.