Vector quantisation (VQ) shows a good performance for image coding with high‐compression ratios. However, there are many difficulties for image coding with VQ, especially the edge degradation and high‐computational complexity. To resolve these two problems, the authors propose a new coding method based on edge orientation patterns (EOPs) by classifying image blocks into nine classes according to their edge orientations. For colour image coding, 27 codebooks (nine for each colour component) are pre‐designed based on a series training images. In the encoding stage, an input colour image is decomposed into Y, Cb, and Cr components, and each component image is divided into non‐overlapping 4 × 4 blocks. For each block, eight edge orientation templates of size 4 × 4 are performed to determine its edge orientation. According to the edge orientation, each block is compressed by using the corresponding codebook. Essentially, the authors' scheme is a kind of classified VC (CVQ). Simulation results show that, their EOP‐based CVQ can largely improve the compression efficiency as well as speeding up the encoding process and it is sufficient to establish effectiveness of the authors' algorithm as compared with the existing techniques. [ABSTRACT FROM AUTHOR]