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Image scrambling is a useful approach to secure the image data by transforming the image into an unintelligible format. This paper introduces a new parameter based M-sequence which can be produced by a series of shift registers. In addition, a new image scrambling algorithm based on the parametric M-sequence is presented. The user can change the security keys, r, which indicates the number of shift operations to be implemented, or the distance parameter p, to generate many different M-sequences. This makes the scrambled images difficult to decode thus providing a high level of security protection for the images. The presented algorithm can encrypt the 2-D or 3-D images in one step. It also shows good performance in the image attacks such as filters (data loss) and noise attacks. The algorithm can be applied in the real-time applications since it is a straightforward process and easily implemented.