Abstract
This paper proposes a new highly efficient coding algorithm for bi-level images that is based on hierarchical structuring with a projection method and employs Markov model coding using an arithmetic code. This algorithm allows for image quality control at internediate stages through the introduction of variable parameters in the projection method. Furthermore, processing, which prevets the disappearance of fine lines during image reduction transformations, is implemented, improving image quality. In addition, through simulation on 8 CCITT test documents, we have demonstrated that the use of arithmetic code provides a 20 percent reduction in the coding rate as compared to MMR.