COLOR SPACE TRANSFORM IS THE FIRST STEP IN IMAGE COMPRESSION SYSTEMS, WHERE THE AMOUNTS OF RED, GREEN AND BLUE ARE TRANSFORMED TO OTHER THREE VALUES. BY THIS TRANSFORM, NOT ONLY WE YIELD SOME REQUIREMENTS SUCH AS EXTRACTED INFORMATION OF LUMINANCE AND COLOR, BUT ALSO WE WILL HAVE IMPROVED IMAGE COMPRESSION EFFICIENCY. FOR THIS REASON, DIFFERENT COLOR SPACES HAVE BEEN USED WHICH HAD NOT CREATED FOR IMPROVING IMAGE COMPRESSION EFFICIENCY. IN THIS PAPER, WE HAVE INVESTIGATED IN DIFFERENT COLOR SPACES AND PROPOSED A NEW COLOR TRANSFORM IN ORDER TO IMPROVING IMAGE COMPRESSION QUALITY. THIS COLOR SPACE IS CREATED FROM A LINEAR TRANSFORM OF RGB COLOR SPACE. THE RESULTS ARE BASED ON A COMPLETE IMAGE COMPRESSION ALGORITHM. JPEG2000 HAS BEEN USED FOR IMAGE COMPRESSION AND GENETIC ALGORITHM FOR TRANSFORM OPTIMIZATION.