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An algorithm for obtaining a self-synchronising M-ary code (M ¿¿ 2) enabling the compression of data from a stationary discrete memoryless source is proposed. After presenting the code algorithm, its properties are analysed and the implementation of the code is described. The code proposed is compared to the Huffman code with regard to the average code-word length, the possibility of self synchronisation and the complexity of hardware realisation. Although for certain sources the code proposed is equal or nearly equal to the Huffman code regarding data compression, in general it is less efficient. However, its property of being self synchronising, and its relatively simple hardware realisation, make this code valuable for practical applications.