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Volumetric medical images are widely used in diagnosing and detecting health problems of patients. Large datasets of volumetric medical images required huge storage space and high network capabilities to transmit these medical images from one location to another especially in the applications of telemedicine and teleradiology. In addition, the quality of medical images plays an important role in successful diagnoses. Therefore, an efficient compression algorithm must achieve significant reduction in the size of these volumetric medical images by using high compression ratio and preserve the quality of these images for successful diagnosis. In this paper, a novel optimized compression algorithm for volumetric medical images is proposed. In this algorithm, the volumetric medical images are divided into two-dimensional (2D) slices where each slice is divided into a group of 8 × 8 nonoverlapped blocks. The …