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Under the precondition of guaranteeing the compression ratio, in order to improve the quality of the reconstructed image, a fractal image compression method based on block classification and quadtree partition is proposed. Firstly, the image is partitioned through adaptive quadtree method. Then, the subblocks in each level are classified, according to the statistical characteristics of the subblocks. The experimental results show that the reconstructed image gained by our method has higher peak signal-to-noise ratio (PSNR) and better visual effect than the adaptive quadtree partition method, meanwhile the compression ratio is increased.