In this paper we propose a method of wavelet coefficient compensation with noise model.In the wavelet transform domain

the wavelet coefficient which is truncated to 0 by quantizer is simulated by noise model.According to these parameters of model

the stochastic texture is synthesized at decoder to improve the distortion and improve the visual quality of decoded image.The result shows that the bit rate is only 0.013 bpp for the parameter of model

and at the same bit rate

compared to the JPEG2000

the visual quality of decoded image is much improved.