Image Compression is an important research subject nowadays. Large number of images traveling over the Internet and the growing trends for transferring images on cell phones has increased the needs for image compression. One of the image compression schemes is Fractal method. In fractal compression a transformation is found which by applying it to any image for sufficient number of times, the original image is resulted. High compression ratio, fast decoding and the independence of the fractal code size from the image size are some of advantages of fractal image compression. The major drawback of fractal method which makes it unsuitable for practical applications is the lengthy coding process. Therefore, this method is mostly used in cases where a picture is referred frequently and there is no need for fast compression. If the compression time were to be reduced, this method could be used in real-time image compression. Time needed for finding the best block has a major role in fractal algorithm time complexity. In this thesis we proposed a number of methods for localizing search and ltr"