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Steganography algorithm based on partition schemes on image coefficient values. Our method selects the AC and DC coefficients of a JPEG image according to a channel selection method and then identifies appropriate coefficients to store the secret data-bits. As opposed to other reported works, in our algorithm each selected coefficient can store a variable number of data-bits that are decided using the concept called ‘Partition Scheme’. Experimental results indicate the suitability of the proposed algorithm as compared to other existing methods.