Abstract: For the problem of perceptual distortion is too large and the high error rate caused by high image source compression rate exists in steganography technology of the current information security area, an image steganography based KLT (Karhunen-Loeve Transform) optimization technique was designed. This method introduces KLT algorithm to compress the image data, instead of the encrypting data with the least significant bit, and a matrix of pixel levels was introduced to obtain an effective image information. Experimental results show that this method has improved capacity, higher SNR and smaller image data distortion, compared to the commonly used algorithms in terms of volume.

Key words: capacity