A new image coding approach is proposed by controlling the quantization step via minimizing the perceptual distortions(in terms of image’s contrast measurement).The proposed method is a rate-oriented contrast-based approach,which is in contrast to the conventional quality-oriented contrast-based image coding.The algorithm achieves a higher perceptual quality performance against several methods developed previously. A new image coding approach is proposed by minimizing the perceptual distortions (in terms of image of contrast measurement). The proposed method is a rate-oriented contrast-based approach, which is in contrast to the conventional quality-oriented contrast -based image coding. The algorithm achieves a higher perceptual quality performance against several methods previously previously.