The concept of sparse representation is gaining momentum in image processing applications, especially in image compression, from last one decade. Sparse coding algorithms represent signals as a sparse linear combination of atoms of an overcomplete dictionary. Earlier works shows that sparse coding of images using learned dictionaries outperforms the JPEG standard for image compression. The conventional method of image compression based on sparse coding, though successful, does not adapting the compression rate based on the image local block characteristics. Here, we have proposed a new framework in which the image is classified into three classes by measuring the block activities followed by sparse coding each of the classes using dictionaries learned specific to each class. K-SVD algorithm has been used for dictionary learning. The sparse coefficients for each class are Huffman encoded and combined to form a single bit stream. The model imparts some rate-distortion attributes to compression as there is provision for setting a different constraint for each class depending on its characteristics. We analyse and compare this model with the conventional model. The outcomes are encouraging and the model makes way for an efficient sparse representation based image compression.