Bandwidth, time and power are three important constraints of image communication system which holds transmission of uncompressed image data. Dictionary based compression and model based compression are two main approaches of adaptive lossless image compression. Dictionary based image compression is known as LZ coding. This paper is based on model based adaptive Huffman coding where the word adaptive comes from dynamically updating. We have already worked with adaptive Huffman lossless text compression based model. We discuss adaptive lossless image compression to reduce bit errors and to calculate compression ratio of the image dynamically.