In this paper the problem of progressive lossless image coding is addressed. Many applications require a lossless compression of the image data. The possibility of progressive decoding of the bitstream adds a new functionality for those applications using data browsing. In practice, the proposed scheme can be of intensive use when accessing large databases of images requiring a lossless compression (especially for medical applications). The international standard JPEG allows a lossless mode. It is based on an entropy reduction of the data using various kinds of estimators followed by source coding. The proposed algorithm works with a completely different philosophy summarized in the following four key points: 1) a perfect reconstruction hierarchical morphological subband decomposition yielding only integer coefficients, 2) prediction of the absence of significant information across scales using zerotrees of wavelet coefficients, 3) entropy-coded successive-approximation quantization, and 4) lossless data compression via adaptive arithmetic coding. This approach produces a completely embedded bitstream. Thus, it is possible to decode only partially the bitstream to reconstruct an approximation of the original image.