Abstract: According to the M-channels wavelet transform theory and the suhdivided signals, we realize the lifting to M-channels wavelet transform, and give a new algorithm of M-channels fast lifting wavelet transform in this paper. The algorithm is so easy that it needs only the decomposition algorithm to obtain, the composition algorithm. However, the integerto-integer wavelet transform can be achieved when the operation result is the proximal integer. The algorithm is used in image processing. The experiment results show the algorithm is very effective for image compression.