The ability to perform the same operations in the transform domain as in the spatial domain is important for efficient image transmission through a channel. We perform image resizing, which includes magnifying and reducing the size, in the discrete cosine transform (DCT) domain and the effects of the transform domain approach are analyzed in the corresponding spatial domain. Based on this analysis, the two resizing algorithms are proposed. The first one further compresses the images encoded by the compression standard by reducing the size before compression, and the other reduces the loss of information while maintaining the conventional compression rate. Because of its compatibility with standard codec, these algorithms can be easily embedded in JPEG and MPEG codecs, which are widely used for the purpose of image storage and transmission. Experimental results show a reduction of about half the bit size with similar image quality and about a 2- or 3-dB quality improvements in the similar compression rate.