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Bitstream compression is important in reconfigurable system design since it reduces the bitstream size and the memory requirement. It also improves the communication bandwidth and thereby decreases the reconfiguration time. Existing research in this field has explored two directions: efficient compression with slow decompression or fast decompression at the cost of compression efficiency. This paper proposes a novel decode-aware compression technique to improve both compression and de compression efficiencies. The three major contributions of this paper are: 1) smart placement of compressed bitstreams that can significantly decrease the overhead of decompression engine; 2) selection of profitable parameters for bitstream compression; and 3) efficient combination of bitmask-based compression and run length encoding of repetitive patterns. Our proposed technique outperforms the existing compression approaches by 15%, while our decompression hardware for variable-length coding is capable of operating at the speed closest to the best known field-programmable gate array-based decoder for fixed-length coding.