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The JPEG2000 is a new image compression standard providing better performances over other previous standards. One of the major parts of JPEG2000 is EBCOT (embedded block coding with optimized truncation) algorithm, which is needed to encode all bitplanes of every codeblock into compressed passes, then, truncated to achieve a particular desired hit-rate by using rate-distortion optimization. Evidently, there is no need to compress all bitplanes of every codeblock as in JPEG2000. The new algorithm is proposed based on the predefined path scanning method due to the need to reduce encoding lime. The key concept of the proposed algorithm is to encode bandplanes, every codeblock of each subband at arbitrary bitplane, according to the predefined path (significance order of bandplane) until it reaches the desired hit-rate. The experimental results show that the encoding time of the proposed algorithm outperforms JPEG2000 while PSNR has been maintained at almost the same level.