The invention relates to a method and apparatus for fast and efficient image compression and decompression comprising transform coding of image data to generate an image representation using transform coefficients, bit-plane serialization of the image representation using transform coefficients, and for each bitplane optimal prefix encoding of bits in a bitplane sharing local context, run-length encoding of 0 bit sequences in the bitplane and storing the coefficients received after optimal prefix encoding and 0 run length encoding starting with the sign followed by the bits in the order of significance, starting with the most significant bit to the least significant bit in a seektable in a header section.