Abstract: In this work we present an effective and computationally simple algorithm for image compression based on Hilbert Scanning of Embedded quadTrees (Hi-SET). It allows to represent an image as an embedded bitstream along a fractal function. Embedding is an important feature of modern image compression algorithms, in this way Salomon in [1, pg. 614] cite that another feature and perhaps a unique one is the fact of achieving the best quality for the number of bits input by the decoder at any point during the decoding. Hi-SET possesses also this latter feature. Furthermore, the coder is based on a quadtree partition strategy, that applied to image transformation structures such as discrete cosine or wavelet transform allows to obtain an energy clustering both in frequency and space. The coding algorithm is composed of three general steps, using just a list of significant pixels. The implementation of the proposed coder is developed for gray-scale and color image compression. Hi-SET compressed images are, on average, 6.20dB better than the ones obtained by other compression techniques based on the Hilbert scanning. Moreover, Hi-SET improves the image quality in 1.39dB and 1.00dB in gray-scale and color compression, respectively, when compared with JPEG2000 coder.