In this paper, we present an additive prediction error expansion (PEE) based reversible data hiding scheme that gives overall low distortion and relatively high embedding capacity. Recently reported interpolation based PEE method uses fixed order predictor that fails to exploit the correlation between the neighborhood pixels and the unknown pixel (to be interpolated).We observed that embedding capacity and distortion of PEE based algorithm depends on the prediction accuracy of the predictor. In view of this observation, we propose an interpolation based method that predicts pixels using predictors of different structure and order. Moreover, we use only original pixels for interpolation. Experimental results demonstrate that the proposed algorithm outperforms the state-of-the-art algorithms both in terms of embedding capacity and Peak Signal to Noise Ratio. © Springer International Publishing Switzerland 2015.