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This paper proposes a low bit-rate fractal image coding algorithm for wireless communication. The fractal image coding is well known for its high compression performance. This performance is useful for future wireless communications with narrow-band. However, in order to become a powerful image coding technique for wireless communications, its reconstructed image quality must be improved. Therefore, to achieve further quality improvement, a novel fractal image coding algorithm is proposed. Some simulation results verify that the proposed method can reconstruct images with 1.4 dB higher quality than JPEG at low bit-rates below 0.12 bits pixel and also higher quality than JPEG2000 at very low bit-rates below 0.035-0.05 bits pixel.