Image compression is currently a prominent topic for both military and commercial researchers. Due to rapid growth of digital media and the subsequent need for reduced storage and to transmit the image in an effective manner Image compression is needed. Image compression attempts to reduce the number of bits required to digitally represent an image while maintaining its perceived visual quality. This study concentrates on the lossless compression of image using approximate matching technique and run length encoding. The performance of this method is compared with the available jpeg compression technique over a wide number of images, showing good agreements.