With the fast evolution of digital data exchange, security of information becomes massively important in data storage and transmission. Due to the increasing use of images in an different process, it is essential to protect the confidential image data from unauthorized access. If encryption is not well performed then there may be possibility of stealing the information. Image compression is also essential where images need to be stored, transmitted or viewed quickly and efficiently. The current paper proposes an efficient technique to compress image by using Daubechies wavelet transforms. Moreover, it uses two algorithms which are advanced encryption standard (AES) and Arnold transform method for encryption the image. Experimental results show efficient technique that is simple in implementation and has high degree of security.