A new image coding improved algorithm based on the combination of ant colony and fractal is proposed in this paper. The algorithm combines the feature of multi-resolution analysis of wavelet transformation

and segments the original image to construct the searching space.After the class matching based on ant colony matching probability of range block and domain block

the average number of matching is reduced greatly.we apply the fractal predicting by the different block size according to the different texture feature of different orientation subimages. That makes improvement of fractal coding speed and realizes image compression.The experimental results indicate that the improved algorithm can decrease the fractal coding time greatly and achieve a higher compression rate.