In this paper, we propose a lossless compression algorithm using adaptive DPCM(Differential Pulse Coded Modulation) for enhancing the compression ratio. To improve the compression efficiency, various DPCM modification algorithms have been proposed. Proposed algorithm presents 16 DPCM methods and adaptively selects the DPCM method for each block. The experimental results show that proposed DPCM algorithm has better performance on compression ratio than JPEG standard.