A method of generating a binary Sel plane for image compression is disclosed. The method first generates a 2 bit gray selector (GraySel). This 2 bit selector is then processed in a second stage to produce a binary Sel decision which minimizes the compression noise evident in the reconstructed image. The method used here to generate the 2 bit GraySel applies a set of prioritized rules over a small 3.times.3 window that is well suited for segmenting synthetic, PDL generated images that are typically free of scanner noise. The method not only marks the proper sense of the selector when it is known, but also include a 3.sup.rd state that indicates that the selector decision is weak or unknown. This weak decision can then be optimized in the second stage process based on strong edges information in the neighborhood.