A novel no-search fractal compression method is proposed by generating the contracted domain block from domain block with the texture feature of the corresponding range block to improve the quality of reconstruction image. The greylevel of the pixels in contracted domain blocks were increased or decreased from the mean of neighboring four pixels in corresponding domain blocks according to the difference between the value of the corresponding pixels in the range block and the average of this range block. Compared with traditional spatial contraction method, the proposed method increases the number of the 2×2 range blocks whose scale parameters are in the valid range, and that reduces the collage error obviously. Experiments on standard images show that the proposed scheme with new spatial contraction method improves the quality of the reconstructed images with nearly the same time consumption.