Compression of multimedia content is an important processing step and backbone of real life applications in terms of optimum resource utilization in transmission and storage. It is an established field of research with very little scope for further improvement in achieved compression through customary codingbased compression techniques. Consequently, non-customary compression methods have become an important area for future research. Based on the principle ‘Any information that can be restored can be compressed’, we propose a novel spectrum-based image compression technique to further reduce the data footprint with satisfactory quality metric for images. We first blur the image with a point spread function (PSF) determined usingfrequency content of the given image. Blurring increases the DC component in the image, which in turn gets further compressed compared with original image by DCT-based JPEG compression. To recover the image, we perform deconvolution using the known blur PSF. Results obtained show further improvement of 20 - 30% in achieved compression with respect to original JPEG compressed image with satisfactory quality of recovered image.