A wavelet-based two-stage near-lossless coder

In this paper, we present a two-stage near-lossless compression scheme. It belongs to the class of "lossy plus residual coding" and consists of a wavelet-based lossy layer followed by arithmetic coding of the quantized residual to guarantee a given L(infinity) error bound in the pixel domain. We focus on the selection of the optimum bit rate for the lossy layer to achieve the minimum total bit rate. Unlike other similar lossy plus lossless approaches using a wavelet-based lossy layer, the proposed method does not require iteration of decoding and inverse discrete wavelet transform in succession to locate the optimum bit rate. We propose a simple method to estimate the optimal bit rate, with a theoretical justification based on the critical rate argument from the rate-distortion theory and the independence of the residual error.