A method and system for rotation-dependent halftone rendering. An image input is received from a scanning system or other source, the received image being either a contone image or an error-diffused mage. If a following right-angle image rotation is to be performed, the image is clustered by a clustering method which yields reduced file sizes with respect to the rotated orientation of the image. If no following right-angle image rotation will be performed, the binary image is clustered by an alternate clustering method which yields reduced file sizes with respect to the non-rotated image. The selective clustering includes dividing the image into a tessellation of cells and then concatenating like bits in each cell in a preferred direction for the rotated or non-rotated image. The clustered image is then rotated if necessary, and compressed.