Yeah, this is what you do, for example re-encode the image with Gray code (avoids the Hamming cliff), you split the bit-planes into 8x8 blocks, compute the entropy within them and encode the data for that block in such a way that it has same/very similar entropy, re-encode from Gray back into normal binary.

See https://web.archive.org/web/20120905034757/http://www.eece.m...