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Image segmentation is one of the important steps in Image processing. This paper introduces an improved quadtree method (IQM) for split-merge called as neighbour naming based image segmentation method (NNBISM) in Kelkar, D. and Grupta, S., (2008), where top-down and bottom-up approaches of region based segmentation techniques are chained. IQM mainly composed of splitting image, onitializing neighbour list and then merging splitted regions. First step uses quadtree for representing splitted Image. In second step neighbour list of every quadtree node, is populated using neighbour naming method (NNM). NNM works at region level, and leads to fast initialisation of adjacency information thus improving the performance of IQM for split merge image segmentation. This populated list is basis for third step which is decomposed in two phases, in-house merge and ginal merge. This decomposing reduces problems involved in handling lengthy neighbour list during merging process .