We introduce a sparse image representation that takes advantage of the geometrical regularity of edges in images. A new class of one-dimensional wavelet orthonormal bases, called foveal wavelets, are introduced to detect and reconstruct singularities. Foveal wavelets are extended in two dimensions, to follow the geometry of arbitrary curves. The resulting two dimensional "bandelets" define orthonormal families that can restore close approximations of regular edges with few non-zero coefficients. A double layer image coding algorithm is described. Edges are coded with quantized bandelet coefficients, and a smooth residual image is coded in a standard two-dimensional wavelet basis.