This paper presents a novel algorithm having two image processing systems that have the ability to compress the colour image. The proposed systems divides the colour image into RGB components, each component is selected to be divided. The division processes of the component into blocks are based on quad tree method. For each selection, the other two components are divided using the same blocks coordinates of the selected divided component. In the first system, every block has three minimum values and three difference values. While the other system, every block has three minimum values and one average difference. From experiments, it is found that the division according to the G component is the best giving good visual quality of the compressed images with appropriate compression ratios. It is also noticed, the performance of the second system is better than the first one. The obtained compression ratios ofthe second system are between 1.3379 and 5.0495 at threshold value 0.1, and between 2.3476 and 8.9713 at threshold value 0.2.