Abstract: In this paper, we introduce a novel encryption algorithm based on Fibonacci numbers. In addition, novel bit-plane decomposition for Fibonacci weights is also discussed that offers cryptographic benefits. The new lossless image encryption algorithm is presented can encrypt an image using this new decomposition method for privacy protection. Further, it has two levels of encryption that could address both pay-per-view applications or secured communication simultaneously. Simulation results and analysis verify that the algorithm shows good performance in image encryption.