Predictor based algorithms reported in literature uses only causal pixels and hence a non-symmetrical predictor structure for prediction. We observed that the performance of predictor is highly dependent on the predictor structure used. In view of this, we propose a novel interpolation based prediction scheme that enables us to use symmetrical predictor structure. In this sense, we have also used non causal pixels in our scheme. Also, from various interpolation algorithms available, we selected a simple one to ensure decoder simplicity, without any significant loss in performance. From performance evaluation, we found that our algorithm is significantly better in terms of compression performance as compared to some of the computationally complex methods. © 2012 IEEE.