This paper proposes an efficient predictive image-compression technique based on vector quantization of blocks of pels. In the proposed method edge contents of blocks control the selection of predictors and block shapes as well. The maximum number of bits assigned to quantizers has been in creased to 3bits/pel from 1/5bits/pel, the setting employed by forerunners in predictive vector quantization of images. This increase prevents the saturation in SNR observed in their results in high bit rates. The variable block shape is instrumental in eh reconstruction of edges. The adaptive procedure is controlled by means of he standard deviation ofp rediction errors generated by a default predictor; the standard deviation address a decision table which can be set up beforehand. eh proposed method is characterized by overall improvements in image quality over A-VQ-PE and A-DCT VQ, both of which are known for their efficient use of vector quantizers.