We introduce an image coding algorithm in which perceptual pruning is used to select the most perceptually relevant image components. The algorithm uses a new maximum likelihood based image indistinguishability criterion that derives from a cortical snapshot, which is a model of the response of striate cortical simple cells to the image at a given point of fixation. The criterion must be satisfied at all points of fixation. We demonstrate that this method selects image components in a better way than matching pursuit and show image coding results of high subjective quality at low encoding rates.