Abstract: This paper presents a new lossless compression algorithm for computer animation image sequences. The algorithm uses transformation information available in the animation script and floating point depth and object number information stored at each pixel to perform highly accurate motion prediction with very low computation. The geometric data, i.e., the depth and object number, is very efficiently compressed using motion prediction and a new technique called direction coding, typically to 1 to 2 bits per pixel. The geometric data is also useful in z-buffer image compositing and this new compression algorithm offers a very low storage overhead method for saving the information needed for z-buffer image compositing. The overall compression ratio of the new algorithm, including the geometric data overhead, is compared to conventional spatial linear prediction compression and is shown to be consistently better, by a factor of 1.4 or more, even with large frame-to-frame motion.