This paper proposes an image coding method based on adaptive downsampling which not only uses the pixel redundancy but also considers visual redundancy. At the encoder side, codec adaptively chooses some smooth regions of the original image to downsample, and then overlapped transform with selectivity, block DCT and adaptive-shape DCT (SA-DCT) are used against the image after being downsampled. For the incomplete transformed image, OB-SPECK is adopted to code. At the decoder side, in order to reduce the computational complexity, we use the simple cubic interpolation which not only is very suitable to the downsampled regions but also enhances greatly the real time of this coding system. Experimental results shows the proposed method outperforms JPEG2000, SPECK, SPIHT, and LT+SPECK at low bit rates.