The computer users have to safeguard the information which they are handling. An information hiding algorithm has to make sure that such information is undecipherable since it may have some sensitive information. This paper proposes a steganography method that conceals the message behind the image by providing the security when compared to the other existing methods. In this system, the information to be hidden is encrypted by an advanced cryptography technique. For that, initially, the data is divided by the method of arithmetic division. The information is hold on within the style of the divisor, the quotient and the remainder. The secret key is also encrypted and holds on several pixels. Then, the pixel matching algorithm is used to hide the information of the secret image in the carrier image. By this system, the embedding time is reduced when compared to different existing algorithms. In this method, different types of images are used for testing the proposed algorithm. By using this method, the peak signal to noise magnitude relation obtained is more for all the pixels present in the image.