his paper is concerned with the design and implementation of a compression method for color image. This method based on Differential Pulse Code Modulation (DPCM), Discrete Cosine Transform (DCT), Discrete Wavelet Transform (DWT) and Quadtree Coding Scheme. As a first step the DPCM technique is used to isolate blocks of an image into correlated and uncorrelated blocks. The isolated correlated blocks have been compressed using DCT based compression method then each block has been embedded with zeros on the original image. Each uncorrelated block has been compressed using DWT based method and put the compressed block in its location on the original image. Then, the result (ie, the zeros blocks and compressed blocks with DWT) coded using Quadtree spatial coding. The output from DWT based and DCT based passed through shift coding stage to gain a possible further compression. The performance results of proposed hybrid algorithms produces better quality of image in terms of Peak-Signal-to-Noise Ratio (PSNR) with a higher Compression Ratio (CR) compared to standalone DCT or DWT. The PSNR values of the reconstructed images after applying proposed system are ranged from 30.62 to 40.95 dB and CR on average, have been reduced to be around 1: 19.6 of the size of the original image.