This paper proposes a lossy image coding method for still images. In this method, recursive and non-recursive type intra prediction techniques are adaptively selected on a block-by-block basis. The recursive-type intra prediction technique applies a linear predictor to each pel within a prediction block in a recursive manner, and thus typically produces smooth image values. In this paper, the non-recursive type intra prediction technique is extended from the angular prediction technique adopted in the H.265/HEVC video coding standard to enable interpolative prediction to the maximum possible extent. The experimental results indicate that the proposed method achieves better coding performance than the conventional method that only uses the recursive-type prediction technique.