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The method proposed by Y. Fisher is the most popular fractal image coding scheme. In his scheme, domain blocks are constrained to be twice as large as range blocks in order to ensure the convergence of the iterative decoding stage. However,this constraint has limited the fractal encoder to exploit the self-similarity of the original image. In order to overcome the shortcoming, a novel scheme using same-sized range and domain blocks is proposed in the paper. Experimental results show the improvements in compression performance.