The invention relates to method and system for compressing an image. The method involves receiving an image of the one or more images. Further, at least one segmentation algorithm is applied on the image and dividing the image into a plurality segments. The method further includes comparing the plurality of segments of the image with a seed image, where seed images include a seed image identifier. Further, a seed image is associated with the segments of the image in case there is a match between the seed image and the plurality of segments. Finally, the method includes storing the image as a residual image and a seed image along with one or more seed image identifiers. Further, the image may be reconstructed based on the residual image and one or more seed images associated with the image. Thereafter, the image may be displayed on a display unit.