This paper presents an efficient technique for satellite multispectral image compression aiming at reducing the size of storage of multispectral images with high-quality reconstruction. The proposed technique is based on removing sub-bands before compression. The removed sub-bands are determined using the correlation coefficients between bands. In the compression process, we use the Discrete Wavelet Transform (DWT) followed by an entropy coder (e.g., a Huffman or an arithmetic encoder) for the most correlated bands. Moreover, we use JPEG2000 to compress the rest of bands with Principal Component Analysis (PCA) as a spectral decorrelation transform. Enhanced Thematic Mapper plus (ETM+) satellite multispectral images are used for the validation of the proposed technique. Experiments results demonstrate that the proposed technique improves the average multispectral image quality by 3–11 dB.