Fractal code of a range block consists in find a best pair through matching between the range block and domain blocks in a pool of domain blocks one by one.This time consuming block matching procedure influences speed of fractal block coding.We focus on the reducing search time of block matching procedure by replacing full search matching with matching in the neighbourhood and matching based on classification of image block.Our result turns out that fractal block coding based on matching in the neighbourhood and classification of image block greatly reduces encoding time

but slightly degradation in PSNR of the decoded image.