This paper introduces a new scheme for still image compression based on Vector Quantisation (VQ). The new scheme first vector quantised the image, then the indices obtained from quantisation are compressed and transmitted. The indices are used as a classifier to identify the active areas of the image. The residual of active areas are vector quantised in the second step and the indices generated are transmitted. The advantage of new scheme is to present the active areas of the coded image accurately without overhead requirement This scheme shows better subjective and objective in comparison with similar VQ schemes.