Steganography is used for invisible secured communication. In this technique, information is hidden on different medium like audio, video, text, or images by using different approaches or algorithms. This research has developed a novel steganography technique which combines grayscale image segmentation and least significant bit (LSB) substitution methods to hide information. In the proposed technique the cover image is segmented in a different number of blocks. Each block hides just one bit of information in its LSB. The number of blocks is directly proportional to the size of the information in bits. In such a way, information is hidden in the whole image, not in a specific area of an image, so there is no image degradation.